HE 


BANCROFT 
LIBRARY 


THE  LIBRARY 

OF 

THE  UNIVERSITY 

OF  CALIFORNIA 


IN  THE 


istrtct  flourt  of  the   fourth  tn&xM   Bairirfi 


OF  THE  STATE  OF  CALIFORNIA, 


IN  AND  FOR  THE  CITY  AND  COUNTY  OF  SAN  FRANCISCO. 


JOHN  R.  ROBINSON, 


Plaintiff, 


vs. 


THE  CENTRAL  PACIFIC 
RAILROAD  COMPANY 
OF  CALIFORNIA  ET 
ALS. 

Defendants. 


COMPLAINT. 


ALFRED  A.  COHEN, 
DELOS  LAKE, 

Attorneys  for  Plaintiff 


■7-7333 


OF  THE 

FOURTH  JUDICIAL  DISTRICT 

OF  THE  STATE  OF  CALIFORNIA, 

In  and  for  the  City  and  County  of  San  Francisco. 

John  R.  Robinson,  Plaintiff,  \ 


vs. 


The  Central  Pacific  Railroad  Company  of  California, 
Leland  Stanford,  Collis  P.  Huntington,  Mark  Hop- 
kins, Charles  Crocker,  Charles  Crocker,  Executor  of 
the  estate  of  Edwin  R.  Crocker  deceased  ;  Charles 
Marsh,  Edward  H.  Miller  Jr.,  R.  R.  Redding,  Wells, 
Fargo  &  Co.,  James  R.  Haggin,  David  D.  Colton, 
The  Contract  and  Finance  Company,  The  Southern 
Pacific  Railroad  Company,  The  Market  Street  Rail- 
way Company,  The  Potrero  and  Ray  View  Railroad 
Company,  The  California  Pacific  Railroad  Company, 
The  Los  Angeles  and  San  Pedro  Railroad  Company,  ) 
The  Rocky  Mountain  Coal  and  Iron  Company,  of/ 
Wyoming ;  C.  H.  Cummings,  Robert  Robinson,  Silas 
W.  Sanderson,  Atlantic  and  Pacific  Telegraph  Com- 1 
pany,  The  Western  Development  Company,  The  San  \ 
Francisco  and  San  Jose  Railroad  Company,  The  San 
Joaquin  Valley  Railroad  Company,  The  California 
and  Oregon  Railroad  Company,  The  Sacramento 
Publishing  Company,  William  H.  Mills,  The  Cen- 
tral Pacific  Railroad  Company,  John  Doe,  Richard 
Roe,  Alexander  Foe,  and  Richard  Joe,  the  names  of 
four  last  named  defendants  being  unknown  to  plaintiff, 
Defendants. 


#£2  77/ 


[2] 


1. 


Plaintiff  above  named  complaining  against  the  above  named 
defendants,  avers,  that  this  action  is  brought  against  said  defend- 
ants on  behalf  of  this  plaintiff  and  all  other  stockholders  of  the  Cen- 
tral Pacific  Railroad  Company,  of  California,  who  may  choose  to 
come  in  and  contribute  to  the  cost  and  expense  of  this  action. 


2. 


That  the  defendant,  the  Central  Pacific  Railroad  Company  of 
California,  was  duly  organized  and  incorporated  under  the  laws  of 
the  State  of  California,  on  or  about  the  27th  day  of  June,  1861, 
and  since  that  day  has  continued  to  be  and  is  a  corpora tioir  for  the 
purposes  mentioned  and  enumerated  in  Articles  of  Association,  a 
copy  whereof  is  hereto  annexed,  marked  A,  and  made  a  part  of  this 
complaint,  and  is  the  same  corporation  mentioned  and  referred  to 
as  the  Central  Pacific  Railroad  Company  of  California,  in  a  law  of 
the  Congress  of  the  United  States,  entitled,  "  An  Act  to  aid  in 
the  construction  of  a  Railroad  and  Telegraph  line  from  the  Mis- 
souri River  to  the  Pacific  Ocean,  and  to  secure  to  the  Government 
the  use  of  the  same  for  postal,  military,  and  other  purposes,"  passed 
July  1st,  1862,  and  another  act,  passed  July  2d,  1864,  to  amend 
said  last  mentioned  act,  and  subsequent  acts  and  resolutions  sup- 
plemental to,  and  amendatory  of,  said  first  mentioned  act,  and  to 
which  said  acts,  laws  and  resolutions,  and  every  part  thereof,  the 
plaintiffs  refer  as  a  part  of  this  complaint. 

That  said  Central  Pacific  Railroad  Company  of  California  here- 
tofore duly  accepted,  acted  upon,  complied  with,  and  is  now  acting 
upon  and  under  the  said  laws,  acts,  and  resolutions  hereinbefore 
mentioned  and  referred  to. 


[3] 


3. 


That  whenever  hereafter,  in  this  complaint,  the  Central  Pacific 
Railroad  Company  of  California  is  mentioned,  and  intended  to  be 
mentioned,  it  is  designated  by  the  letters  C.  P. 


4. 


That  one  of  the  principal  places  of  business  of  said  C.  P.  is,  and 
has  been  for  over  one  year  last  past,  in  said  city  and  county  of 
San  Francisco,  and  during  said  last  mentioned  period  frequent 
business  meetings  of  its  directors  have  been  held  in  said  city  and 
county. 


That  the  capital  stock  of  said  C.  P.  is,  and  has  been,  since  the 
organization  and  incorporation  thereof,  the  sum  of  eight  million 
five  hundred  thousand  dollars,  divided  into  eighty-five  thousand 
(85,000)  shares,  of  one  hundred  dollars  each. 


6. 


That  on  the  15th  day  of  April,  1862,  the  plaintiff  duly  subscrib- 
ed for,  and  has  heretofore,  in  good  faith,  paid  for  to  said  C.  P.,  at 
the  nominal  par  value  thereof,  ten  shares  of  the  capital  stock  of 
said  C.  P.,  and  has,  ever  since  said  15th  day  of  April,  held  and 
owned,  and  now  holds  and  owns  said  ten  shares. 


That  the  defendants,  Leland  Stanford,  C.  P.  Huntington,  Mark 
Hopkins,   Charles  Crocker,  and    Charles  Marsh  originally   sub- 


[4] 

scribed  to  said  capital  stock,  and  agreed  to  take  and  pay  for  the 
shares  thereof  so  subscribed  by  them  respectively,  at  their  par  val- 
ue as  follows,  to  wit: 

Said  Leland  Stanford,  150  shares. 

Said  C.  P.  Huntington,  150  shares. 

Said  Mark  Hopkins,  150  shares. 

Said  Charles  Crocker,  150  shares. 

And  said  Charles  Marsh,  50  shares. 

That  afterward,  but  at  what  particular  date  or  dates  plaintiff 
is  ignorant,  all  the  shares  of  the  capital  stock,  so  as  aforesaid 
subscribed  for  by  said  last  named  defendants,  purport  to  have  been 
issued  by  said  last  mentioned  corporation  to  said  last  mentioned 
defendants  respectively. 

The  plaintiff  is  informed  and  believes,  and  therefore  avers,  upon 
and  according  to  his  information  and  belief,  that  said  last  named 
defendants  did  not,  nor  did  either  of  them,  ever  pay  to  said  corpo- 
ration, or  deliver  to  it,  any  money  or  other  valuable  thing  for  the 
shares  of  capital  stock  so  purporting  to  have  been  issued  to  said  last 
named  defendants,  respectively  ;  but  in  truth  and  in  fact  the  whole 
of  such  stock  was  so  issued  without  any  consideration  ever  having 
been  paid  or  delivered  therefor,  illegally,  in  fraud  and  violation  of 
the  statute  in  such  case  made  and  provided,  and  in  fraud  of  the 
rights  of  the  plaintiff  and  the  other  stockholders  of  the  C.  P. 

That  the  only  stock  of  said  last  mentioned  corporation  ever  paid 
for  in  good  faith,  according  to  law,  and  lawfully  issued  by  it,  is  and 
has  been  such  shares  as  are  now  held  by  the  plaintiff,  and  such 
shares  as  were  heretofore  issued  to  the  county  of  Placer,  State 
of  California,  to  wit,  twenty-five  hundred  shares  ;  to  the  county  of 
Sacramento,  State  aforesaid,  three  thousand  shares ;  to  Samuel 
{Hooper,  fifty  shares ;  to  Benj.  T.  Reid,  fifty  shares  ;  to  Glidden  & 
Williams,  composed  of  Wm.  J.  Glidden,  Jno.  A.  Glidden,  John  M. 
Glidden,  and  John  M.  S.  Williams,  one  hundred  and  twenty-five 
shares  ;  Orville  D.  Lambard,  one  hundred  and  twenty  shares  ; 
Charles  A.  Lambard,  two  hundred  shares;  Mrs.  Anne  F.  Judah, 
twenty-five  shares;  Samuel  P.  Shaw,  fifty  shares;  R.  O.  Ives, 
twent}T-five  shares ;  Samuel  Brannan,  two  hundred  shares  ;  and  about 
nine  hundred  shares  issued  to  divers  individuals  whose  names  and 
residences  are  unknown  to  plaintiff. 


[5] 

That  the  said  last  mentioned  defendants  and  their  confederates, 
to  the  plaintiff  unknown,  assuming  to  act  and  in  fact  but  illegally 
acting  as  directors  of  said  C.  P.,  and  composing  a  majority 
thereof,  have  caused  to  be  issued  to  themselves  and  divers  their 
confederates,  to  plaintiff  unknown,  large  amounts  of  the  capital 
stock  of  said  corporation ;  but  that  all  of  said  stock  so  issued  to 
them  and  their  said  confederates  has  been  issued  without  consider- 
ation illegally  and  fraudulently,  and  the  issuance  thereof  was  and 
is  wholly  illegal  and  void. 


8. 


That  nearly  all  of  the  aforesaid  stock  so  as  aforesaid  issued  to 
the  County  of  Placer — to  wit,  2,500  shares  ;  to  the  County  of 
Sacramento,  3,000  shares ;  to  Samuel  Hooper,  fifty  shares  ;  to 
Benjamin  T.  Reid,  fifty  shares  ;  to  Glidden  &  Williams,  125 
shares  ;  to  Orville  D.  Lambard,  120  shares  ;  to  Charles  A.  Lam- 
bard,  200  shares  ;  to  Mrs.  Anne  F.  Judah,  twenty-five  shares  ; 
to  Samuel  P.  Shaw,  fifty  shares  ;  to  R.  O.  Ives,  twenty-five  shares  ; 
to  Samuel  Brannan,  200  shares ;  and  a  portion  of  the  other  900 
shares  or  thereabouts  as  above  mentioned — has  been  purchased  by 
the  defendants,  Leland  Stanford,  C.  P.  Huntington,  Mark  Hop- 
kins, Charles  and  E.  B.  Crocker,  and  who  now  claim  to  own  the 
same  ;  and  plaintiff  is  informed  and  believes,  and  so  avers,  upon 
and  according  to  his  information  and  belief,  that  said  purchase  was 
made  and  paid  for  by  said  Stanford,  Huntington,  Hopkins,  Charles 
and  E.  B.  Crocker,  with  moneys  derived  by  them  from  the  earn- 
ings of  the  said  C.  P.  under  the  name  of  a  certain  firm  known  as 
Charles  Crocker  &  Company  and  a  certain  corporation  known  as  the 
Contract  and  Finance  Company,  as  will  be  hereafter  shown,  and 
not  otherwise. 


9. 

That  the  defendants  Leland  Stanford,  Charles  Crocker,  Charles 
Marsh,  C.  P.  Huntington,  Mark  Hopkins,  and  others  their  con- 


[6] 

federates,  to  plaintiff  unknown,  were  the  directors  of  said  C.  P.  to 
manage  the  concerns  thereof,  for  the  first  three  months  after  the 
organization  thereof.  That  at  the  expiration  of  said  three  months, 
the  defendants  Leland  Stanford,  Charles  Crocker,  E.  B.  Crocker, 
C.  P.  Huntington,  Mark  Hopkins,  and  Charles  Marsh,  and  their 
confederates,  to  plaintiff  unknown,  pretending,  appearing,  and 
falsely  claiming  to  be  the  nominal  owners  of  a  majority  of  the  capi- 
tal stock  of  said  C.  P.,  purporting  to  have  been  issued  by  it,  and 
by  other  secret  devices  and  contrivances  unknown  to  plaintiff,  com- 
bining and  confederating  together,  elected  themselves  a  majority  of 
the  directors  of  said  last  mentioned  corporation,  .and  have  from 
thence  hitherto,  as  nominal  directors  thereof,  exercised  the  entire 
control  and  management  of  all  its  affairs,  business,  subsidies,  and 
assets,  to  their  joint  and  individual  benefit,  advantage,  profit,  and 
gain,  and  to  the  loss,,  detriment,  and  disadvantage  of  said  last  men- 
tioned corporation,  of  plaintiff  and  the  other  stockholders  thereof, 
as  hereinafter  more  particularly  averred  and  charged. 


10. 


Plaintiff  avers  that  he  is  advised,  informed,  and  believes,  and 
therefore,  upon  and  according  to  his  information  and  belief,  avers, 
that  neither  of  the  said  defendants  Leland  Stanford,  Hopkins,  Hun- 
tington, Charles  and  E.  B.  Crocker,  or  their  confederates,  although 
they  claim  to  be  respectively,  and  assert  they  are  respectively,  and 
nominally  appear  to  be  respectively,  owners  of  a  large  number  of 
shares  of  the  capital  stock  of  said  C.  P.,  over  and  above  what  they 
respectively  purport  to  have  subscribed  for,  at  the  time  of  the  or- 
ganization of  said  C.  P.,  yet,  in  truth  and  in  fact,  as  plaintiff  is  in- 
formed and  believes,  and  therefore  avers  upon  and  according  to  his 
nformation  and  belief,  all  such  shares  not  so  as  aforesaid  subscribed 
for,  have  in  part  been  purchased  and  acquired  by  said  last  men- 
tioned defendants  and  their  confederates,  with  the  assets,  moneys, 
and  property  of  said  last  mentioned  corporation,  and  in  part  issued 
to  said  defendants  and  their  confederates  without  any  compensation 
moving   to  said  last   mentioned  corporation;  in   violation   of  the 


[7] 

statute  under  which  said  corporation  was  organized  and  is  acting ; 
and  all  such  shares  are  held  in  trust  by  said  last  named  defendants 
for  said  corporation. 


11. 


That  in  and  by  the  Act  of  Congress  first  aforesaid,  and  the 
acts  and  resolutions  supplemental  to  and  amendatory  thereof,  the 
said  defendant  C.  P.  was  and  is  authorized  and  empowered  to 
construct,  and  maintain  a  railroad  and  telegraph  line  from  the  Pa- 
cific Coast,  at  or  near  San  Francisco,  California,  to  Echo  City,  in 
the  Territory  of  Utah,  in  and  through  all  the  intervening  States 
and  Territories,  a  distance  of  seven  hundred  and  eighty-four  and 
one-half  miles,  or  thereabouts. 

That  in  and  by  said  acts  and  resolutions  last  above  mentioned, 
there  was  granted  to  said  C.  P.  by  the  United  States  of  America, 
the  right  of  way  for  the  railroad  and  telegraph  line  of  said  last 
named  corporation,  for  the  distance  aforesaid,  over  and  through 
the  public  lands  of  the  United  States,  situate  between  San  Fran- 
cisco aforesaid  and  Echo  City  aforesaid,  including  all  necessary 
grounds  for  stations,  buildings,  workshops,  depots,  machine-shops, 
switches,  side  tracks,  turn-tables,  and  water  stations,  and  the 
right  to  take  from  the  public  lands  adjacent  to  the  line  of  its  said 
road  for  the  construction  thereof  such  earth,  stone,  timber,  and  other 
material  as  might  be  necessary  therefor ;  and  also  twenty  alternate 
sections  of  public  land,  (not  including  mineral  lands  containing  the 
precious  metals)  for  each  and  every  mile  of  its  said  road  on  the 
line  thereof,  and  within  the  limits  of  twenty  miles  on  each  side  of 
said  road,  equal  to  twelve  thousand  eight  hundred  acres  of  public 
land  per  mile  of  said  railroad  ;  and  also  the  timber  on  all  mineral 
lands  within  said  limits. 

And  there  was  further  granted  to  it,  the  said  corporation, 
the  C.  P.,  and  the  Secretary  of  the  Treasury  of  the  United 
States  was  authorized  and  required  to  issue  to  said  C.  P.,  in  aid 
of  the  construction  of  said  railroad  and  telegraph  line,  bonds  of  the 
United  States  of  America  of  the  denomination  of  one  thousand  dol- 
lars each,  payable  in  thirty  years  after  the  date  thereof,  bearing 


[8] 

six  per  centum  per  annum  interest,  payable  semi-annually  to  the 
amount  of  sixteen,  thirty-two,  and  forty-eight  of  such  bonds  for 
each  and  every  mile  of  said  railroad  and  telegraph  line  so  com- 
pleted and  equipped  as  aforesaid,  according  to  the  character  of  the 
land  or  country  over  which  the  same  might  pass,  that  is  to  say  : 
sixteen  of  said  bonds  per  mile  for  seven  and  eighteen  one-hun- 
dredths  (7  18-100)  miles  from  the  city  of  Sacramento  to  the 
western  base  of  the  Sierra  Nevada  Mountains,  forty-eight  bonds 
per  mile  for  one  hundred  and  fifty  miles  across  and  over  the  Sierra 
Nevada  Mountains,  and  thirty-two  bonds  per  mile  for  six  hundred 
and  twenty-seven  and  32-100  miles  eastwardly  across  the  Great 
Salt  Lake  Basin  to  Echo  City  aforesaid,  in  the  Territory  of  Utah, 
amounting  in  all  to  twenty-seven  thousand  three  hundred  and  eighty- 
nine  120-1000  bonds,  of  one  thousand  dollars  each,  and  to  the  sum 
of  twenty-seven  millions  three  hundred  and  eighty-nine  thousand 
one  hundred  and  twenty  dollars  (-$27,389,120)  in  value. 


12. 


That  in  and  by  an  act  of  the  Legislature  of  the  State  of  Califor- 
nia entitled  "  An  Act  to  aid  the  construction  of  the  Central  Pacific 
Kailroad  in  the  State  of  California,  and  other  matters  relating 
thereto,''  passed  April  25,  1863,  and  to  which  said  act  and  every 
part  thereof  plaintiff  refers  as  a  part  of  this  complaint,  the  Con- 
troller of  the  State  of  California  was  authorized  and  empowered 
whenever  the  railroad  of  said  defendant,  C.  P.,  should  be  completed 
from  the  city  of  Sacramento  in  said  State  to  the  eastern  boun- 
dary of  said  State,  and  ready  for  the  conveyance  and  transportation 
of  passengers  and  freight,  to  draw  his,  said  Controller's,  warrants 
upon  the  Treasurer  of  said  State,  and  said  Treasurer  was  author- 
ized to  pay  the  same  out  of  the  State  Treasury,  in  behalf  of  and  in 
favor  of  said  C.  P.,  in  sums  of  not  less  than  one  thousand  dollars 
each,  for  an  amount  equal  to  ten  thousand  dollars  in  United 
States  gold  coin  per  mile  for  each  mile  of  its  railway  thus  comple- 
ted and  equipped,  and  deliver  such  warrants  to  said  C.  P. 


m 


13. 


That  in  and  by  that  certain  other  law  of  the  State  of  California 
entitled  "  An  act  to  authorize  the  county  of  Placer  to  subscribe  to 
the  capital  stock  of  the  Central  Pacific  Railroad  of  California,  and 
to  provide  for  the  payment  of  the  same,  and  other  matters  relating 
thereto  " — passed  April  2,  1863,  to  which  act  plaintiff  refers  as  a 
part  of  this  complaint,  the  Board  of  Supervisors  of  said  county  of 
Placer  was  authorized,  upon  the  affirmative  vote  of  the  qualified 
electors  of  said  county  so  to  do,  to  take  and  subscribe,  for  the  use 
and  benefit  of  said  county,  to  the  capital  stock  of  said  C.  P.,  to 
the  amount  of  two  hundred  and  fifty  thousand  dollars,  and  therefor 
to  issue  and  deliver  to  said  C.  P.  the  bonds  of  said  county  for 
a  like  amount,  payable  in  twenty  years  from  the  date  of  their 
issuance,  with  interest  thereon  at  the  rate  of  eight  per  cent,  per 
annum,  principal  and  interest  payable  in  United  States  gold  coin. 

That  thereafter,  and  pursuant  to  said  last  mentioned  act,  a 
majority  of  the  qualified  electors  of  the  said  county,  at  an  election 
duly  held,  did  authorize  the  issuance  and  delivery  of  two  hund- 
red and  fifty  thousand  dollars  of  said  county  bonds,  as  in  said  act 
provided. 


14. 


That  in  and  by  that  other  law  of  the  State  of  California,  entitled 
"  An  Act  to  authorize  the  Board  of  Supervisors  of  the  city  and 
county  of  San  Francisco  to  take  and  subscribe  one  million  of 
dollars  to  the  capital  stock  of  the  Western  Pacific  Railroad  Com- 
pany and  the  Central  Pacific  Railroad  Company  of  California,  and 
to  provide  for  the  payment  of  the  same,  and  other  matters  relat- 
ing thereto,"  passed  April  22,  1863,  and  to  which  said  act  plaint- 
iff refers  as  a  part  of  this  complaint,  among  other  things,  the  Board 
of  Supervisors  of  said  city  and  county  was  authorized  and  re- 
quired, upon  the  affirmative  vote  therefor  of  the  qualified  electors 
of  said  city  and  county,  to  take  and  subscribe,  for  the  use  and  ben- 
efit of  said  city  and  county,  to  the  capital  stock  of  the  said  corpo- 


[10] 

ration,  C.  P.,  to  the  amount  of  six  hundred  thousand  dollars,  and 
to  deliver  to  said  C.  P.  therefor  the  bonds  of  said  city  and  county, 
to  the  amount  of  six  hundred  thousand  dollars,  payable  in  three 
years  from  the  date  of  the  issuance  thereof,  with  interest  thereon 
at  the  rate  of  six  per  cent,  per  annum,  payable  semi-annually  ; 
principal  and  interest  payable  in  U.  S.  gold  coin. 

That  afterwards,  at  an  election  duly  held  pursuant  to  said  act, 
in  said  city  and  county,  the  qualified  electors  thereof  did  vote  in 
favor  of  taking  and  subscribing  for  such  stock,  and  the  issuance 
and  delivery  of  such  bonds. 


15. 


That  in  and  by  a  certain  other  law  of  the  State  of  California, 
entitled  "  An  Act  to  confer  additional  powers  upon  the  Board  of 
Supervisors  of  the  city  and  county  of  San  Francisco  and  the 
Auditor  and  Treasurer  thereof,  and  to  authorize  the  appropriation 
of  money  by  said  Board,"  passed  April  4,  1864,  to  which  plaintiff 
refers  as  a  part  of  this  complaint,  the  Board  of  Supervisors  of  said 
city  and  county  of  San  Francisco  was  authorized  and  empowered 
to  compromise  and  settle  all  claims  on  the  part  of  said  C.  P.,  under 
the  act  referred  to  in  the  last  preceding  article  of  this  complaint, 
upon  or  against  the  said  city  and  county  by  reason  of  said  act,  by 
payment  of  cash,  or  the  giving  of  other  security,  in  place  of  the 
bonds  authorized  to  be  issued  by  said  law  passed  April  22,  1863. 


16. 


That  in  pursuance  of  said  last  two  mentioned  laws,  the  said  city 
and  county  of  San  Francisco,  by  its  Board  of  Supervisors,  did 
issue  and  deliver  on  or  about  the  21st  day  of  April,  1865,  to  said 
C.  P.,  bonds  of  the  said  city  and  county  of  San  Francisco  to  the 
amount  of  four  hundred  thousand  dollars,  payable  in  thirty  years 
from  the  date  of  their  issuance,  with  interest  thereon  at  the  rate 
of  seven  per  centum  per  annum,  payable  semi-annually  in  U.  S. 
gold  coin ;  and  did  at  the  same  time  relinquish  to  said  company 


[11] 

all  claims  in  favor  of  said  city  and  county,  upon  and  against  said 
C.  P.  for  any  of  its  capital  stock  provided  to  be  issued  by  said  act 
passed  April  22,  1863. 


17. 


That  in  and  by  a  certain  other  law  of  the  State  of  California, 
entitled  "  An  Act  to  authorize  the  city  and  county  of  Sacramento 
to  subscribe  to  the  capital  stock  of  the  Central  Pacific  Railroad 
Company  of  California,  and  providing  for  the  payment  of  the  same, 
and  other  matters  relating  thereto,"  passed  April  25th,  1863,  to 
which  plaintiff  refers  as  a  part  of  this  complaint,  the  Board  of 
Supervisors  of  the  city  and  county  of  Sacramento  was  authorized, 
upon  the  affirmative  vote  therefor  of  the  qualified  electors  of  said 
city  and  county  of  Sacramento,  to  take  and  subscribe,  for  the  use 
and  benefit  of  said  city  and  county,  to  the  capital  stock  of  said 
defendant,  C.  P.,  to  the  amount  of  three  hundred  thousand  dollars, 
and  therefor  to  issue  and  deliver  to  the  said  C.  P.  the  bonds  of  said 
city  and  county  to  the  amount  of  three  hundred  thousand  dollars, 
payable  in  thirty  years  from  the  date  of  their  issue,  with  interest 
thereon  at  the  rate  of  eight  per  centum  per  annum,  payable  semi- 
annually, principal  and  interest  payable  in  U.  S.  gold  coin. 


18. 

/ 

That  m  and  by  a  certain  other  law  of  the  State  of  California, 
entitled  "  An  Act  to  aid  in  the  construction  of  the  Central  Pacific 
Railroad,  and  to  secure  the  use  of  the  same  to  this  State  for  mil- 
itary and  other  purposes,  and  other  matters  relating  thereto," 
passed  April  4th,  1864,  and  to  which  plaintiff  refers  as  a  part  of 
this  complaint,  the  C.  P.  was* authorized  to  issue  its  bonds,  from 
time  to  time,  to  the  amount  of  twelve  millions  of  dollars,  ($12,- 
000,000)  payable  in  twenty  years  from  the  first  day  of  January. 
1865,  in  U.  S.  gold  coin,  with  interest  at  the  rate  of  seven  per  cent, 
per. annum,  payable  semi-annually;  the  payment  of  the  principal 
to  be  secured  by  one  or  more  mortgages  on  the  railroad  of  said  com- 


[12] 

pany,  its  rolling  stock,  buildings,  machinery,  fixtures,  and  corporate 
franchises,  and  the  interest  aforesaid  to  accrue  thereon  to  be  paid 
by  the  State  of  California. 


19. 


That  in  and  by  another  law  of  the  State  of  California,  entitled 
"  An  Act  granting  certain  rights  to  the  Central  Pacific  Railroad 
Company  of  California,  and  for  other  purposes,"  passed  April  14th, 
1863,  and  to  which  plaintiff  refers  as  a  part  of  this  complaint';  and 
also  by  certain  ordinances  and  resolutions  duly  ordained  and  passed 
by  the  Board  of  Supervisors  of  the  city  and  county  of  San  Fran- 
cisco and  of  the  city  and  county  of  Sacramento  respectively  ;  and 
by  the  authorities  of  other  municipal  bodies,  bodies  politic  and  cor- 
porate, in  the  said  State  of  California,  and  in  and  by  certain  deeds 
of  gift  from  said  municipal  bodies,  bodies  politic  and  corporate,  and 
from  divers  individuals,  duly  executed  and  delivered  to  said  C. 
P.  as  grantee,  as  plaintiff  is  informed,  and  believes,  and  avers  upon 
and  according  to  his  information  and  belief,  the  said  C.  P.  has  ac- 
quired and  now  holds,  and  owns,  and  is  possessed  of,  a  large 
amount  of  real  estate  and  other  properties  in  said  city  and  county 
of  San  Francisco,  in  said  city  and  county  of  Sacramento,  and  at 
divers  other  places  in  the  State  of  California  and  along  the  line 
of  its  railroad  from  Sacramento  to  the  eastern  boundary  line  of  said 
State  aforesaid,  of  great  value,  to  wit:  of  the  value,  as  plaintiff  is 
informed  and  believes,  and  therefore  avers,  of  ten  millions  of  dollars 
(110,000,000). 

20. 

That  as  plaintiff  is  informed  and  believes,  and  therefore  avers, 
upon  and  according  to  his  information  and  belief,  and  as  certain 
other  ordinances  and  resolutions  duly  ordained,  made  and  passed 
by  various  municipal  corporations'  and  bodies  politic  and  corporate 
of  the  said  State  of  Nevada,  and  of  the  said  Territory  of  Utah, 
and  by  various  other  deeds  of  gift  duly  executed  and  delivered  by 
various  municipal  corporations,  bodies  politic  and  corporate,  and 


[13] 

divers  individuals,  in  said  State  of  Nevada  and  Territory  of  Utah, 
respectively,  to  said  C.  P.,  said  defendant  C.  P.  heretofore  ac- 
quired, and  is  now  the  owner  and  possessor  of,  a  large  amount  of 
real  estate  and  other  property  in  said  last  mentioned  State  and  Ter- 
ritory, along  and  in  the  vicinity  of  its  railway,  of  great  value, 
to  wit :  of  the  value,  as  plaintiff  is  informed  and  believes,  and  there- 
fore avers,  of  five  millions  of  dollars  ($5,000,000). 


21. 


That  said  Railroad  and  Telegraph  Line,  so  as  aforesaid  author- 
ized to  be  constructed  by  said  C.  P.  from  the  Pacific  Coast,  at  or 
near  the  city  and  county  of  San  Francisco,  in  the  State  of  Cali- 
fornia, to  Echo  City  aforesaid,  have  been  and  now  are  wholly  com- 
pleted, equipped,  and  furnished,  according  to  law,  to  wit :  from  Sac- 
ramento to  Echo  City,  aforesaid,  a  distance  of  seven  hundred  and 
eighty-four  and  a  half  miles,  or  thereabouts ;  and  the  same,  with 
all  the  franchises,  privileges,  and  appurtenances  thereto  belonging, 
since  the  8th  day  of  May,  A.  d.  1869,  have  been  and  are  now 
being  operated  by  said  C.  P.,  and  by  the  individuals,  corporations, 
and  associations  hereinafter  mentioned,  for  the  conveyance  and 
transportation  of  passengers  and  freights,  and  the  transmission  of 
telegraph  messages. 


22. 


That  all  the  bonds  of  the  United  States,  authorized  to  be  issued 
by  said  acts  of  Congress  and  resolutions  hereinbefore  mentioned 
and  referred  to,  and  the  grants  of  public  land  thereby  authorized 
to  be  made  to  the  said  C.  P.  by  the  said  acts  of  Congress,  and  the 
said  State  bonds  and  warrants,  and  the  bonds  of  the  said  county 
of  Placer,  and  of  the  said  city  and  county  of  Sacramento,  and  of 
the  said  city  and  county  of  San  Francisco,  and  the  grants  of  State 
lands  authorized  to  be  made  to  the  said  C.  P.  by  the  laws  of  the 
State  of  California  hereinbefore  mentioned  and  referred  to,  and 


[14] 

the  lands  donated  by  the  said  city  and  county  of  Sacramento,  and 
by  the  city  and  county  of  San  Francisco,  and  by  the  various  other 
municipal  bodies,  bodies  politic  and  corporate,  and  individuals,  as 
aforesaid,  have  all  been  delivered  and  made  over  to  said  C.  P.,  and 
were  received  in  its  name  by  the  said  defendants,  Leland  Stanford, 
Hopkins,  Huntington,  Charles  Crocker,  E.  B.  Crocker,  Marsh  and 
Miller,  acting  as  its  Board  of  Directors,  and  the  first  and  second 
mortgage  bonds  of  said  C.  P.,  so  as  aforesaid  authorized  to  be  is- 
sued, have  been  issued  by  it  and  delivered  to  its  said  last  named 
directors ;  and  all  of  said  bonds,  together  with  the  interest  coupons 
attached,  have  been  sold  and  disposed  of  by  said  last  mentioned 
directors  in  the  name  of  said  C.  P.,  or  are  fraudulently  detained 
by  said  last  named  directors  ;  and  the  moneys  realized  from  all  said 
sources  and  subsidies  have  been  appropriated  by  the  said  direc- 
tors, Leland  Stanford,  Hopkins,  Huntington,  E.  B.  Crocker,  Char- 
les Crocker,  Marsh  and  Miller,  and  their  confederates,  to  plaintiff 
unknown,  and  whose  names,  when  ascertained,  plaintiff  prays  may 
be  inserted  herein,  with  proper  and  apt  words  to  charge  them,  to 
their  own  use,  except  such  small  portions  thereof  as  were  actually 
used  in  the  construction  of  said  road  and  telegraph  line,  as  herein- 
after averred. 


23. 


Plaintiff  further  avers,  on  and  according  to  his  information  and 
belief,  that  under  said  acts  of  Congress  and  the  acts  amendatory 
thereof  and  resolutions  supplementary  thereto,  in  Articles  2  and 
12  of  this  complaint  mentioned  and  referred  to,  said  C.  P.  became 
entitled  to  and  has  become  the  owner  of  ten  millions  and  forty-one 
thousand  six  hundred  acres  of  public  lands  of  the  United  States, 
situate  and  lying  between  the  city  of  Sacramento  aforesaid  and 
Echo  City  aforesaid,  of  great  value,  to  wit,  of  the  value,  as  plaintiff 
is  informed  and  believes,  and  avers  upon  and  according  to  his 
information  and  belief,  of  fifty  millions  two  hundred  and  eight 
thousand  dollars  (150,208,000)  gold  coin  of  the  United  States. 


[15] 


24. 


That  under  said  acts  of  Congress  and  the  acts  and  resolutions 
amendatory  thereof  and  supplementary  thereto,  there  have  been  in 
fact  issued  and  delivered  to  the  said  C.  P.,  as  plaintiff  is  informed 
and  believes,  and  therefore  avers  upon  and  according  to  his  infor- 
mation and  belief,  by  the  United  States  government,  United  States 
bonds  bearing  interest  as  therein  provided,  and  payable  at  the  times 
therein  provided,  to  the  amount  of  127,389,120,  to  aid  in  the  con- 
struction of  said  railroad  and  telegraph  line,  from  Sacramento  afore- 
said to  Echo  City  aforesaid ;  that  said  bonds  now  are  and  have 
been  of  the  value,  ever  since  the  issuance  thereof,  in  lawful  money 
of  the  United  States,  of  $27,389,120,  and  said  last  mentioned  sum 
has  been  realized  from  the  disposition  thereof,  and  used  and  appro- 
priated as  hereinafter  more  particularly  averred. 

That  pursuant  to  said  law  of  the  State  of  California,  approved 
April  25,  1863,  mentioned  and  referred  to  in  Article  12  o§  this 
complaint,  the  said  C.  P.,  subsequent  to  the  passage  of  said  acts, 
and  in  the  years  1864-5,  received  from  the  State  of  California  the 
sum  of  $1,500,000  in  United  States  gold  coin,  and  which  has  been 
used  and  disposed  of  as  hereinafter  more  particularly  averred. 

That  pursuant  to  said  Statute,  approved  April  2d,  1863,  referred 
to  in  Article  13  of  this  complaint,  the  said  county  of  Placer  duly 
issued  and  delivered  to  said  C.  P.  the  bonds  of  said  county  to  the 
amount  of  two  hundred  and  fifty  thousand  dollars,  gold  coin,  pay- 
able with  interest  as  in  said  act  provided,  which  bonds,  when  issued 
and  delivered,  were,  ever  since  have  been,  and  still  are,  of  the 
aggregate  value  in  gold  coin  of  the  United  States  of  two  hundred 
and  fifty  thousand  dollars  ($250,000). 

That  pursuant  to  said  Statute,  approved  April  22d,  1863,  and 
the  acts  supplementary  thereto,  referred  to  in  Articles  14,  15, 
and  16  of  this  complaint,  there  were  on  or  about  the  20th  day  of 
April,  1865,  duly  issued  and  delivered  to  said  C.  P.,  bonds  of  the 
City  and  County  of  San  Francisco,  of  the  par  value  of  four 
hundred  thousand  dollars,  payable  at  the  times  and  bearing  inter- 
est as  in  said  last  mentioned  acts  provided,  which  said  last  men- 


[16] 

tioned  bonds,  when  issued,  were,  ever  since  have  been,  and  now  are 
of  the  aggregate  value  of  four  hundred  thousand  dollars,  United 
States  gold  coin,  ($400,000)  and  that  sum  has  been  realized  there- 
from, by  the  disposition  thereof,  as  hereinafter  averred. 


25. 


That  pursuant  to  said  statute,  approved  April  25, 1868,  referred 
to  in  Article  17  of  this  complaint,  the  said  City  and  County  of 
Sacramento  duly  issued  and  delivered  to  said  C.  P.  its  county 
bonds  to  the  amount  of  three  hundred  thousand  dollars,  gold  coin 
of  the  United  States,  payable  with  interest,  as  in  said  act  provided  ; 
and  which  said  bonds,  when  issued  and  delivered,  were,  ever  since 
have  been,  and  still  are  of  the  aggregate  value  of  $300,000,  gold 
coin  of  the  United  States,  and  that  sum  has  been  realized  from  the 
disposition  thereof,  and  used  and  appropriated  as  hereinafter  more 
particularly  averred. 


26. 


That  pursuant  to  said  statute,  approved  April  4,  1864,  referred 
to  in  Article  17  of  this  complaint,  the  said  C.  P.  heretofore  issued 
its  mortgage  bonds,  payable  as  in  said  act  provided,  with  interest 
coupons  attached,  payable  by,  and  which  interest  has  been,  from 
the  date  of  said  bonds  to  the  present  time,  in  fact,  paid  by,  the 
State  of  California.  That  said  C.  P.  has  heretofore,  but  at  what 
particular  date  or  dates  plaintiff  is  ignorant,  sold  or  otherwise 
disposed  of  said  bonds,  and  has  received  and  realized  therefrom,  as 
plaintiff  is  informed  and  believes,  and  therefore  avers,  the  sum  of 
$12,000,000,  United  States  gold  coin,  which  sum  has  been  used 
and  appropriated  as  hereinafter  more  particularly  averred.  That 
pursuant  to  the  said  Act  of  Congress,  and  the  acts  and  resolutions 
amendatory  of  and  supplemental  thereto,  referred  to  in  Articles  2 
and  10  of  this  complaint,  the  said  C.  P.  heretofore  issued  under  the 
signatures  of  its  officers  and  its  corporate  seal,  and  delivered  to 


[17] 

defendants,  Leland  Stanford,  E.  B.  Crocker,  Charles  Crocker, 
Huntington,  Hopkins,  Marsh,  Miller,  and  their  confederates,  to 
plaintiff  unknown,  its  first  mortgage  bonds  to  the  amount  of  $27,- 
389,120,  payable  in  United  States  gold  coin,  with  interest  at  the 
rate  of  ten  per  cent,  per  annum,  secured  by  the  first  mortgages 
of  said  C.  P.  upon  its  road,  equipments,  furniture,  franchises,  de- 
pots, machine-shops,  and  other  property. 

That,  as  plaintiff  is  informed  and  believes,  and  therefore  avers, 
upon  and  according  to  his  information  and  belief,  the  said  C.  P. 
issued  and  delivered  on  or  about  the  day  of 

186  ,  and  on  divers  other  days  prior  to  the  first  day  of  March, 
1876,  to  said  defendants  Leland  Stanford,  E.  B.  Crocker,  Charles 
Crocker,  Huntington,  Hopkins,  Miller,  Marsh,  and  their  confeder- 
ates, to  plaintiff  unknown,  its  second  mortgage  bonds  to  the  amount 
of  127,387,120,  payable  in  United  States  gold  coin,  with  interest 
at  ten  per  cent,  per  annum.  That  said  second  mortgage  bonds, 
with  the  exception  of  $11,787,378.17  of  the  nominal  value  there- 
of, and  all  of  the  said  first  mortgage  bonds,  have  been,  as  plaint- 
iff is  informed  and  believes,  and  therefore  so  avers,  delivered  by 
the  said  C.  P.  to  the  said  Leland  Stanford,  E.  B.  Crocker, 
Charles  Crocker,  Huntington,  Hopkins,  Miller,  Marsh,  and  their 
confederates,  to  plaintiff  unknown,  and  by  them  and  their  confed- 
erates kept  and  retained  and  appropriated  to  their  own  use,  in 
violation  of  their  duties  as  directors,  in  fraud  of  the  rights  of  said 
C.  P.,  of  plaintiff  and  the  other  stockholders  of  said  C.  P. ;  and 
said  second  mortgage  bonds,  to  the  amount  of  $11,787,378.17 
have  been  sold  by  said  defendants  last  above  named,  and  the  sum 
of  at  least  $11,787,378.17  in  United  States  gold  coin  realized 
therefrom  by  them,  and  by  them  or  some  of  them  converted  to 
their  own  use. 


27. 


Plaintiff  avers  and  charges  that  the  following  is  a  correct  sum- 
mary, statement,  and  estimate  of  the  various  subsidies  and   aids 
granted  to  said  C.  P.  in  aid  of  the  construction  of  its  railroad  and 
telegraph  line,  as  near  as  he  can  ascertain  the  same : 
2 


[18] 

Value  in  gold  coin. 

Lands  granted  by  United  States 850,208,000  00 

"      granted  and  donated  by  various  corpora- 
tions,   etc.,   situate   within   the    State   of 

California 5,000,000  00 

u      granted  and    donated  bj  various  corpora- 
tions and    individuals    situate  within    the 

State   of  Nevada 3,000,000  00 

"      granted  and   donated   by  various  corpora- 
tions and  individuals  within  the  Territory 

of    Utah 2,000,000  00 

Donation  by  the  State  of  California 1,500,000  00 

Bonds  on  which  the  State  of  California  guaranteed 

the  interest 12,000,000  00 

Bonds  of-  Placer  County 250,000  00 

Bonds  of  the  City  and  County  of  San  Francisco        400,000  00 
Bonds. of  the  City  and  County  of  Sacramento. . .         300,000  00 

CURRENCY. 

Bonds  of  the  U.  S.  Government 827,389,120  00 

First  mortgage  bonds  of  said  C.  P . 27,389,120  00 

Second  mortgage  bonds  of  said  C.  P.,  delivering  to 

defendants   L.    Stanford,   Charles   and   E.   B. 

Crocker,  Huntington,  Hopkins,  A.  P.  Stanford, 

Marsh  &  Miller,  as  above  charged 15,601,741  83 

Second  mortgage  bonds  issued  and  sold  as  above 

charged 11,787,378  17 

Total 1156,825,360  00 


28. 


That  instead  of  undertaking  by  its  own  officers  and  agents  the 
construction  of  its  railroad  and  telegraph  line,  and  the  furnishing 
and  equipping  thereof,  or  making  a  reasonable  contract  with  disin- 
terested persons  therefor,  or  letting  out  the  work  and  the  furnish- 


[19] 

ing  of  materials  for  the  construction,  furnishing,  and  equipping 
thereof,  to  the  lowest  bidder ;  and  instead  of  endeavoring  to  con- 
struct, furnish,  and  equip  the  same  in  the  most  economical  manner, 
the  said  Leland  Stanford,  Huntington,  Hopkins,  Charles  and  E.  B. 
Crocker,  and  their  confederates,  then  composing  a  majority  of  the 
Directors  of  the  said  C.  P.,  combining  and  confederating  together 
to  defraud  the  said  C.  P.,  and  the  plaintiff  and  other  stockholders 
thereof,  and  to  secure  to  themselves,  jointly  and  severally,  per- 
sonally, great  profits,  advantages,  and  gains,  entered  into  an 
arrangement  among  themselves,  under  the  name  of  C.  Crocker  & 
Co.,  and  under  that  name,  from  the  commencement  of  the  con- 
struction of  its  railroad  at  the  city  of  Sacramento,  until  about  the 
month  of  November,  1867,  contracted  with  said  C.  P.  to  furnish 
the  materials  for,  and  to  construct,  furnish,  and  equip  so  much  of 
said  railroad  and  telegraph  line  as  was  constructed,  furnished,  and 
equipped,  or  partly  constructed,  furnished,  and  equipped,  prior  to 
the  first  day  of  November,  1867. 

That  such  contract  and  contracts  were  caused  to  be  made  in 
the  name  of  the  said  C.  P.,  by  the  votes  and  direction  of  said 
Leland  Stanford,  Huntington,  Hopkins,  Charles  and  E.  B.  Crocker, 
and  their  confederates,  (who  composed  a  majority  of  the  Board  of 
Directors  of  said  C.  P.)  with  said  C.  Crocker  &  Co.,  a  copartner- 
ship, of  which  the  said  last  named  defendants  were  members,  for 
their  joint  and  individual  profit  and  gain,  and  the  prices  and  rates 
at  which  the  same  were  let  were  exorbitant  and  excessive,  to  wit, 
at  the  rate,  as  plaintiff  is  informed  and  believes,  of  two  hundred 
per  cent,  over  and  above  the  actual  and  reasonable  cost  and  ex- 
pense of  the  work  done,  and  the  materials,  furniture,  and  equip- 
ments furnished  in  the  name  of  said  C.  Crocker  &  Co.;  whereby 
the  said  last  named  defendants  did  receive  from  said  C.  P.,  and 
appropriate  to  their  own  use,  and  did  vote  to  themselves,  under  the 
pretense  of  being  Directors  of  said  C.  P.,  large  sums  of  money, 
bonds,  and  assets  of  said  C.  P.,  to  wit,  as  near  as  plaintiff  can 
estimate  the  same,  seven  million  dollars  ($7,000,000)  in  value, 
over  and  above  the  actual  cost  of  the  work  done  and  the  materials, 
furniture,  and  equipments  furnished  in  the  name  of,  or  under  the 
direction  of,  said  C.  Crocker  &  Company. 


[20] 


29. 


That  afterwards,  to  wit,  on  or  about  the  18th  day  of  November, 
1867,  the  said  defendants  Huntington,  Hopkins,  Leland  Stanford, 
0.  and  E.  B.  Crocker,  and  divers  others,  their  associates  and  con- 
federates, to  plaintiff  unknown,  combining  and  confederating  to- 
gether to  cheat  and  defraud  plaintiff  and  the  other  stockholders  of 
the  C.  P.,  and  the  said  C.  P.,  and  fraudulently  to  acquire  and  ap- 
propriate to  themselves,  without  consideration  or  a  just  equivalent, 
large  profits  and  gains  and  large  amounts  of  the  assets  and  property 
of  the  said  C.  P.,  organized  themselves  and  some  of  their  servant's 
and  employees,  to  plaintiff  unknown,  under  the  laws  of  the  State  of 
California,  into  a  corporation  styled  the  "  Contract  and  Finance 
Company,"  for  the  purpose  of  taking  contracts  for  the  construction 
of  subdivisions  of  the  railroad  and  telegraph  line  of  said  C.  P.  and 
the  appurtenances  necessarily  connected  therewith,  and  the  equip- 
ping and  furnishing  the  same. 

That  from  and  after  the  organization  of  said  "  Contract  and  Fi- 
nance Company,"  all  the  contracts  made  and  entered  into  in  the 
name  of  the  said  C.  P.  for  materials  to  be  furnished  for,  and  work 
to  be  done  in,  the  construction,  furnishing,  and  equipment  of  said 
railroad  and  telegraph  line,  were  by  said  Leland  Stanford,  Hopkins^ 
Huntington,  C.  and  E.  B.  Crocker,  and  their  confederates,  com- 
posing a  majority  of  the  directors  of  said  C.  P.,  voted  to  be  let,  and 
in  fact  were  let  and  entered  into  by  said  C.  P.,  of  the  one  part, 
and  the  said  "  Contract  and  Finance  Company  "  of  the  other  part, 
without  advertising  to  let  the  same  to  the  lowest  bidders  or  bidder, 
and  without  in  any  manner  inviting  competition  therefor. 

That  under  the  fraudulent  and  illegal  pretense  of  paying  for  said 
materials,  work,  equipment,  and  furniture  nominally  contracted  to 
be  furnished  and  done  by  said  "  Contract,  and  Finance  Company," 
but  really  and  in  fact  by  said  last  mentioned  directors  and  their 
confederates  for  their  own  benefit,  the  said  last  mentioned  directors 
and  their  confederates  from  time  to  time  voted  to  pay,  deliver,  and 
make  over,  and  did  pay,  deliver,  and  make  over,  in  the  name  of 
said  C.  P.,  to  said  "  Contract    and  Finance  Company  "  and  its 


[21] 

confederates,  large  sums  of  money  and  large  amounts  of  bonds, 
lands,  and  other  valuable  assets  of  said  C.  P.,  of  great  value,  to 
wit,  of  the  value,  as  plaintiff  is  informed  and  believes,  of  two 
hundred  and  twenty-five  million  eight  hundred  and  fifty-five  thous- 
and six  hundred  and  eighteen  dollars  and  seventeen  cents  ($225,- 
855,618.17). 

That  said  last  mentioned  moneys,  bonds,  subsidies,  lands,  and 
other  valuable  assets  so  made  over,  transferred,  and  delivered  to 
said  "  Contract  and  Finance  Company,"  were  in  value  greatly  in 
excess,  to  wit,  to  the  amount  of  two  hundred  and  six  millions  six 
hundred  and  thirty-two  thousand  six  hundred  sixty-one  dollars  and 
fifty  and  one-third  cents,  ($206,632,661,501)  of  the  actual  cost  of, 
and  of  a  fair  price  for,  all  materials,  furniture,  and  equipments 
furnished  by  and  work  done  by  said  "  Contract  and  Finance 
Company,"  or  by  its  sub-contractors  or  employees  in  the  construction 
of  said  railroad  and  telegraph  line,  and  the  appurtenances  thereof: 
and  in  said  last  mentioned  sum  in  excess  of  the  sum  in  which  the 
same  could  have  been  let  out  for,  and  contracted  to  be  done  and 
furnished  for,  by  responsible  persons  and  firms  who  did  not  intend 
to  cheat  and  defraud  the  said  C.  P.,  this  plaintiff,  and  the  other 
stockholders  of  the  said  C.  P. 

The  said  defendants,  Leland  Stanford,  Huntington,  Hopkins,  E. 
B.  and  C.  Crocker,  heretofore,  to  wit,  on  or  about  the  20th  day  of 
July,  1869,  under  the  name  of  said  "Contract  and  Finance  Com- 
pany," divided  among  themselves  the  said  two  hundred  and  six 
millions  six  hundred  and  thirty-two  thousand  six  hundred  and  sixty- 
one  dollars  and  fifty  and  one-third  cents,  ($206,632,661.50-0  in 
value  of  the  assets,  subsidies,  and  property  of  said  C.  P.,  so  as 
aforesaid  delivered  to  said  "  Contract  and  Finance  Company,"  but 
in  what  proportions  this  plaintiff  is  ignorant^  but  is  informed 
and  believes,  and  therefore  avers,  upon  and  according  to  his  infor- 
mation and  belief,  that  the  said  sum  was  so  divided  in  the  propor- 
tion of  one-fifth  to  each  of  the  last  named  defendants. 

And  this  plaintiff  avers,  on  and  according  to  his  information  and 
belief,  that  said  "  Contract  and  Finance  Company"  did  sublet  the 
greater  portion  of  the  work  to  be  done,  and  which  was  done,  and  the 
materials   to  be  furnished,  and  which  were  furnished  in    the    con- 


[22] 

struction  of  the  said  telegraph  and  railroad  line  under  its  contracts 
with  said  0.  P.  at  prices  greatly  below,  to  wit,  more  than  ten 
hundred  per  cent,  below  the  prices  which  said  C.  P.  nominally  un- 
dertook to  pay  to  said  a  Contract  and  Finance  Company"  for  doing 
the  same  work  and  furnishing  the  same  materials. 


30. 


Plaintiff  further  avers,  upon  and  according  to  his  information 
and  belief,  that  all  the  bonds  issued  to  the  said  C.  P.  by  the  United 
States  Government ;  also  all  the  warrants  issued  by  the  State  of 
California  ;  also  the  guarantee  for  the  payment  of  interest  by 
the  State  of  California  aforesaid  ;  also  the  bonds  issued  and  de- 
livered by  the  county  of  Placer,  by  .the  city  and  county  of 
Sacramento,  by  the  city  and  county  of  San  Francisco,  and  the  first 
mortgage  bonds  issued  by  said  C.  P.  as  aforesaid ;  also  the  second 
mortgage  bonds  issued  by  said  C.  P.  as  aforesaid,  have  all  been 
transferred  to,  and  the  control  and  benefit  thereof  vested  in,  defend- 
ants, Leland  Stanford,  Huntington,  Hopkins,  Charles  and  E.  B. 
Crocker,  and  their  confederates,  under  the  pretense  and  pretext  of 
paying  and  delivering  the  same  to  said  "  Contract  and  Finance 
Company,  "  composed  of  said  last  named  defendants  and  their 
confederates,  as  in  part  a  fair  compensation  for  the  work  purport- 
ing to  have  been  done,  and  materials,  furniture,  and  equipments 
purporting  to  have  been  furnished,  by  said  "  Contract  and  Finance 
Company  "  in  the  construction  of  said  railroad  and  telegraph  line, 
and  the  equipment  and  furnishing  thereof,  and  the  same  have,  by 
the  said  last  named  defendants,  been  converted  to  their  own  use. 


31. 


That  the  dividends,  profits,  and  gains  so  as  aforesaid  received 
and  realized  by  the  said  defendants,  Leland  Stanford,  C.  P.  Hunt- 
ington, Mark  Hopkins,  Charles  and  E.  B.  Crocker,  and  their 
confederates,  in  the  name  of  Charles  Crocker  &  Co.,  and  in  the 
name  of    said  "  Contract  and    Finance   Company,"   amount,  as 


[23] 

plaintiff  is  informed  and  believes,  and  therefore  avers,  upon  his  in- 
formation and  belief,  to  the  sum  of  two  hundred  and  eleven  million 
two  hundred  and  ninety-nine  thousand  three  hundred  and  eight 
dollars  and  seventeen  cents  (8211,299,308.17)  ;  the  whole  of 
which  ought  in  justice  and  equity  to  belong  to  the  said  C.  P.,  for  the 
benefit  of  the  stockholders. 


32. 


That  defendant  B.  B.  Redding  is  and  has  been,  since  the  first 
day  of  January,  1865,  an  agent  and  employee  of  the  defendants, 
Leland  Stanford,  Huntington,  Hopkins,  Charles  and  E.  B.  Crocker, 
though  professing  to  be,  and  nominally  appearing  to  be  and  to  have 
been,  during  said  period,  an  employee  of  said  C.  P. ;  that  said 
Leland  Stanford,  Huntington,  Hopkins,  Charles  and  E.  B.  Crocker, 
acting  as  directors  of  said  C.  P.,  have,  as  plaintiff  is  informed  and 
believes,  and  so  avers,  upon  and  according  to  his  information  and 
belief,  heretofore  voted  to  sell  and  convey,  and  have  caused  the  of- 
ficers of  the  said  C.  P.  to  convey,  to  said  Redding  and  his  and 
their  confederates,  unknown  \p  plaintiff,  a  large  part  of,  and  the 
most  valuable  portions  of,  the  lands  so  as  aforesaid  granted  by  the 
United  States  to  said  C.  P.  for  mere  nominal  considerations,  to 
wit,  for  one  dollar  and  twenty-five  cents  per  acre.  That  all  of  said 
pretended  sales  and  conveyances  have  been,  in  fact,  made  with  the 
secret  understanding  and  agreement  between  said  Redding  and  his 
confederates,  and  said  Hopkins,  Huntington,  Leland  Stanford, 
Charles  and  E.  B.  Crocker,  and  their  confederates,  that  said  Red- 
ding and  his  confederates  should  hold,  and  from  time  to  time  dis- 
pose of,  said  lands  so  conveyed  to  him  and  his  confederates,  as 
aforesaid,  for  the  benefit  of  said  Leland  Stanford,  Huntington,  Hop- 
kins, Charles  and  E.  B.  Crocker. 

That  said  lands  so  conveyed  to  said  Redding  and  his  confed- 
erates are  of  great  value,  but  of  what  value  plaintiff  is  ignorant. 
That  all  moneys  paid  or  purporting  to  have  been  paid,  if  any 
have  been  paid  to  said  C.  P.  for  said  lands,  have  been,  in  fact, 
paid  by  said  Leland  Stanford,  Huntington,  Hopkins,  Charles  and  E. 
B.  Crocker,  out  of  the  profits  and  gains  so  as  aforesaid  made  and 


[24] 

realized  by  them  in  the  name  of  the  said  "  Contract  and  Finance 
Company"  and  in  the  name  of  said  C.  Crocker  &  Co.  That 
there  are  divers  other  persons,  to  plaintiff  unknown,  who  purport  to 
have  received,  and  have  received,  pretended  conveyances  of  parcels 
and  sections  of  said  lands,  the  number  of  acres  and  particular  sub- 
divisions being  unknown  to  plaintiffs. 

That  said  last  named  persons  hold  the  lands,  so  as  aforesaid  con- 
veyed to  them,  in  secret  trust  for  Leland  Stanford,  Huntington, 
Hopkins,  Charles  and  E.  B.  Crocker. 


33. 


Plaintiff  is  informed  and  believes,  and  therefore  avers,  upon  and 
according  to  his  information  and  belief,  that  said  C.  P.,  from  its 
organization  up  to  the  31st  day  of  December,  1875,  received  for  the 
transportation  of  freight,  property,  and  passengers  over  its  line  of 
railroad  to  and  from  Sacramento  aforesaid,  the  sum  of  fifty-five 
million  one  hundred  and  thirty-three  thousand  three  hundred  and 
sixty-four  dollars  and  eighty-nine  cents  ($55,133,364.89)  ;  and 
during  the  same  period,  from  the  transmission  of  telegraph  mes- 
sages over  its  telegraph  line,  the  sum  of  three  million  (3,000,- 
000)  dollars. 

That  since  the  said  tenth  day  of  February,  1869,  said  C.  P.  has 
received  for  the  transportation  of  freight  and  property  (other  than 
express  freights  as  in  Article  36  in  this  complaint  mentioned)  and 
passengers,  the  sum  of  five  million  nine  hundred  and  seventy-three 
thousand  and  fifty-one  dollars  and  seven  cents  ($5,973,057.07)  ; 
and  has,  since  said  last  mentioned  day,  received  for  the  transmis- 
sion of  messages  over  its  said  telegraph  line,  the  sum  of  two  mil- 
lion eight  hundred  and  seventy-three  thousand  dollars  ($2,873,000). 


34. 


The  plaintiff  is  informed  and  believes,  and  therefore  avers,  upon 
and  according  to  his  information  and  belief,  that  the  first  seven 
and  18-100  miles  of  said  railroad  and  telegraph  line  from  Sacra- 


[25] 

mento,  eastwardly,  was  actually  constructed  for  a  little  less  than 
eleven  thousand  five  hundred  dollars  per  mile.  That  the  actual 
cost  of  the  next  succeeding  one  hundred  and  fifty  miles,  eastwardly, 
was  less  than  forty-two  thousand  dollars  per  mile,  and  no  greater 
sum  was  expended  in  the  construction  thereof.  That  the  actual 
cost  of  the  construction  of  the  rest  of  said  road  and  telegraph  line, 
to"  wit,  for  a  distance  of  six  hundred  and  twenty-seven  and  83-100 
miles,  was  less  than  twenty-one  thousand  dollars  per  mile ;  which 
said  cost  for  each  distance  included  stations,  depots,  switches,  turn- 
tables, side  tracks,  water  tanks,  and  water  stations,  platforms,  ware- 
houses, repair  shops,  machine  shops,  engine  houses,  and  all  other 
equipments  and  furniture  of  said  road,  except  rolling  stock.  That 
the  rolling  stock,  to  wit,  cars,  engines,  hand  cars,  and  other  equip- 
ments of  said  road  and  telegraph  lines  actually  furnished  for  and 
actually  used  by  said  C.  P.,  between  its  organization  and  the  first 
day  of  January,  1876,  has  not  cost  to  exceed  the  sum  of  two  million 
dollars,  and  the  plaintiffs  charge,  in  fact,  that  the  same  has  cost 
much  less. 


35. 


Plaintiff  further  avers  that  he  -is  informed  and  believes,  and  he 
therefore,  upon  and  according  to  his  information  and  belief,  charges, 
that  the  said  Leland  Stanford,  Huntington,  Hopkins,  Charles 
and  E.  B.  Crocker,  and  their  confederates,  with  the  funds  and 
assets  of  the  said  C.  P.,  between  the  first  day  of  July,  1861,  and 
the  first  day  of  May,  1869,  constructed  and  maintained  a  wagon 
•road,  commonly  known  and  called  the  "  Dutch  Flat  Wagon  Road," 
and  charged  the  cost  of  the  construction  thereof,  to  wit,  one  hun- 
dred and  fifty  thousand  dollars,  to  the  construction  account  of  the 
C.  P.,  under  the  pretense  that  the  construction  thereof  was  neces- 
sary for  hauling  freight  and  materials  to  be  used  in  the  construc- 
tion of  said  railroad. 

That  said  Stanford,  Huntington,  Hopkins,  Charles  and  E.  B. 
Crocker,  and  their  confederates,  collected  tolls  on  said  wagon  road, 
from  freights,  passengers,  and  vehicles  passing  over  the  same,  to  a 
large  amount,  to  wit,  to  the  amount  of  three  hundred  and  fifty 


[26] 

thousand  dollars  in  United  States  gold  coin,  ($350,000)  and  ap- 
propriated and  applied  the  same  to  their  own  use  and  benefit. 


36. 


That  the  defendant,  Wells,  Fargo  &  Co.,  has  been,  for  ten  years 
last  past,  and  still  is,  a  corporation  duly  organized,  created,  and  ex- 
isting under  the  laws  of  the  State  of  New  York,  for  the  purpose 
of  transporting  express  freight,  coin,  bullion,  and  other  valuable 
packages  and  letters  over  the  various  lines  of  railroad  and  steamboat 
travel  throughout  the  United  States,  and  particularly  from  New 
York  city,  State  of  New  York,  to  San  Francisco,  in  the  State  of 
California,  and  places  intermediate.  That  the  said  defendants, 
Hopkins,  Huntington,  Leland  Stanford,  Charles  and  E.  B.  Crocker, 
and  their  confederates,  to  plaintiff  unknown,  acting  as  and  compos- 
ing a  majority  of  the  Board  of  Directors  of  said  C.  P.  between  the 
first  day  of  May,  1869,  and  the  first  day  of  April,  1870,  but  at 
what  particular  date  plaintiffs  are  ignorant,  in  the  name  of  said  C. 
P.,  granted  to  and  contracted  with  said  defendant,  Wells,  Fargo 
&  Co.,  in  substance  and  to  the  effect,  that  said  Wells,  Fargo  & 
Co.  should  have  the  exclusive  right  of  running  express  freight 
trains,  and  carrying  and  transporting  express  freight,  express  pack- 
ages, bullion,  &c,  over  said  C.  P.'s  line  of  railway;  that  in  con- 
sideration thereof,  said  Wells,  Fargo  &  Co.  increased  or  "  watered" 
its  capital  stock  from  $10,000,000.00  to  115,000,000.00,  and  de- 
livered and  made  over  to  said  Leland  Stanford,  Huntington,  Hop- 
kins, Charles  and  E.  B.  Crocker,  or  for  their  benefit,  without  any 
consideration,  except  the  making  of  said  contract  in  the  name  of 
said  C.  P.,  one  and  one-half  millions  of  said  watered  stock  of 
Wells,  Fargo  &  Co. ;  and  from  thence  hitherto,  said  Leland  Stan- 
ford, Charles  and  E.  B.  Crocker,  Huntington  &  Hopkins,  have 
been,  and  now  claim  to  be,  the  owners  of  one  and  one-half  millions, 
or  thereabouts,  of  said  Wells,  Fargo  &  Co.'s  stock,  of  the  value 
of  11,500,000. 


\ 


[27] 


37. 


That  the  Western  Pacific  Railroad  Company  of  California,  on, 
and  long  prior  to,  the  13th  day  of  December,  1862,  was  and  ever 
since  has  been  a  corporation  duly  organized  under  the  laws  of  the 
State  of  California,  for  the  construction  and  maintenance  of  a  rail- 
way and  telegraph  line  from  a  point  at  or  near  the  city  of  San  Jose, 
Santa  Clara  County,  California,  by  way  of  Stockton  and  inter- 
mediate places,  to  Sacramento  aforesaid,  a  distance  of  about  one 
hundred  and  twenty-five  (125)  miles. 

That  said  last  mentioned  corporation,  whenever  hereinafter 
mentioned  in  this  complaint,  is  designated  by  the  letters  W.  P. 

That  said  W.  P.  was,  and  is,  by  various  laws  and  statutes, 
entitled  to  have  and  receive  large  subsidies  in  bonds,  lands,  rights, 
franchises,  and  other  valuable  privileges. 

That  as  plaintiff  is  informed  and  believes,  and  therefore,  upon 
and  according  to  his  information  and  belief,  avers,  on  or  about  the 
10th  day  of  August,  1867,  the  defendants,  Leland  Stanford,  Hunt- 
ington, Hopkins,  Charles  and  E.  B.  Crockery  purchased  of  one 
Charles  McLaughlin  and  other  persons  unknown  to  plaintiff,  but  who 
composed  the  stockholders  of  said  W.  P.,  all  the  capital  stock  of 
said  last  mentioned  corporation,  and  took  arid  received  a  transfer 
and  assignment  thereof  to  themselves  and  their  confederates,  and 
at  the  same  time  took  a  delivery  of,  and  there  was  delivered  to 
them  by  the  Directors  of  said  W.  P.,  so  much  of  the  railroad  of 
said  W.  P.  as  had  then  been  completed,  and  partly  completed ;  and 
they  have,  since  said  day,  controlled  and  managed  the  affairs  and 
business  of  said  last  mentioned  corporation,  and  have  constructed 
and  completed  a  railway  and  telegraph  line  from  San  Jose  aforesaid 
to  Sacramento  aforesaid,  and  are  using  as  the  rolling  stock  and 
equipments  thereof  in  running  the  same  the  rolling  stock  and  equip- 
ments of  said  C.  P.  That  the  stock  of  said  W.  P.,  so  as  aforesaid 
purchased,  was  purchased,  and  said  last  mentioned  railroad  and 
telegraph  line  has  been  wholly  stocked,  equipped,  and  furnished, 
with  the  moneys  and  assets  of  the  saidC.  P.  wrongfully  and  illegally 


[28] 

appropriated  for  that  purpose  by  the  said  Stanford,  Huntington, 
Hopkins,  Charles  and  E.  B.  Crocker. 

That  said  last  mentioned  defendants  and  their  confederates  hold 
said  stock,  so  purchased,  and  said  last  mentioned  railroad  and  tele- 
graph line  so  delivered  in  trust  for  the  said  C.  P.  and  its  stockhold- 
ers. 

That  afterward,  to  wit,  on  or  about  the  20th  day  of  December, 
1869,  the  said  Stanford,  Huntington,  Hopkins,  Charles  and  E.  B. 
Crocker,  and  their  confederates,  received  from  the  United  States 
Government  its  bonds  and  coupons  for  sixteen  thousand  dollars  per 
mile,  for  the  distance  from  Sacramento  to  a  point  near  Vallejo's 
Mills,  in  the  county  of  Alameda,  to  wit,  one  hundred  and  twenty- 
five  miles,  as  subsidies  to  aid  in  the  construction  of  the  railroad 
and  telegraph  line  of  said  W.  P.  from  San  Jose  aforesaid  to 
Sacramento  aforesaid,  and  have  converted  the  same  to  their  own 
use. 

That  such  bonds  when  so  converted,  to  wit,  on  the  first  day  of 
January,  1870,  were  and  still  are  of  the  value  of  two  million  dollars 
($2,000,000). 

That  from  the  running  and  management  of  said  last  mentioned 
road  and  telegraph  line,  said  Leland  Stanford,  Huntington,  Hopkins, 
Charles  and  E.  B.  Crocker  have  heretofore  received  and  appropri- 
ated to  their  own  use  large  sums  of  money,  to  wit,  three  millions 
of  dollars  ($3,000,000)  ;  that  said  last  mentioned  bonds  and  sum 
of  money,  of  right  and  in  equity,  belong  to  said  C.  P.  and  its  stock- 
holders. 


That  said  Stanford,  Huntington,  Hopkins,  Charles  and  E.  B. 
Crocker,  with  other  moneys  and  assets  of  said  C.  P.,  so  as  aforesaid 
received,  realized,  and  appropriated  by  them  in  fraud  of  the  said  C. 
P.,  and  its  stockholders,  heretofore,  to  wit,  between  the  first  day 
of  May,  1868,  and  the  20th  day  of  March,  1870,  constructed  and 
equipped  a  branch  of  the  said  W.  P.,  from  a  point  near  the  Ala- 
meda creek,  near  Vallejo's  Mills,  in  Alameda  county,  to  a  point  at 
or  near  San  Antonio,  in  the  county  of  Alameda,  and   they  and 


[29] 

their  confederates  now  claim  to  own,  and  in  fact  manage,  and 
control,  and  are-  running,  said  branch  in  connection  with  the  said 
W.  P.,  said  C.  P.,  and  the  San  Francisco  and  Oakland  Railroad 
Company's  road,  hereinafter  mentioned,  and  are  and  have  been 
receiving  since  September  1st,  1869,  as  net  gains  and  profits  of 
running  the  same,  about  ten  thousand  dollars  (-110,000)  gold  coin 
per  month. 

That  said  last  mentioned  branch,  its  furniture,  depots,  and 
equipments,  and  the  net  earnings  there  of,  are,  in  fact  and  in  truth, 
held  by  said  Stanford,  Huntington,  Hopkins,  Charles  and  E.  B. 
Crocker,  in  trust  for  said  C.  P.  and  its  stockholders. 


39. 


That  the  said  San  Francisco  and  Oakland  Railroad  Company  has 
been,  for  several  years  last  past,  and  is,  a  corporation  duly  incor- 
porated, and  existing  under  the  laws  of  the  State  of  California,  for 
the  purpose  of  running  a  railroad  and  ferry,  and  by  means  thereof, 
transporting  freight  and  passengers  from  San  Antonio,  Alameda 
county,  through  Oakland,  to  the  city  and  county  of  San  Francisco. 

That  as  plaintiff  is  informed  and  believes,  and  therefore  avers, 
upon  and  according  to  his  information  and  belief,  on  or  about  the 
20th  day  of  March,  1869,  the  defendants  Leland  Stanford,  Hunt- 
ington, Hopkins,  Charles  and  E.  B.  Crocker,  and  their  confederates 
to  plaintiff  unknown,  purchased  from  A.  A.  Cohen,  Michael  Reese, 
and  others,  the  owners  thereof,  nearly  all  of  the  capital  stock  of 
said  last  mentioned  corporation,  and  the  same  was  by  said  vendors 
transferred  and  assigned  to  said  last  named  defendants  and  their 
confederates,  and  at  the  same  time  there  was  delivered  to  said  last 
named  defendants  and  their  confederates,  by  the  Directors  of  said 
corporation,  the  possession  of  the  railroad,  railroad  depots,  rolling 
stock,  furniture,  and  equipments  belonging  to  the  said  San  Francisco 
and  Oakland  Railroad  Company,  and  the  ferry  boats  belonging  to 
it,  to  wit,  the  "El  Capitan,"  and  other  boats. 

That  in  consideration  of  said  assignment,  transfer,  and  delivery 
as  plaintiff  is  informed  and  believes,  and  therefore  avers,  upon  and 
according  to  his  information  and  belief,  the  said  Leland  Stanford, 


[30] 

Huntington,  Hopkins,  Charles  and  E.  B.  Crocker  agreed  to  pay, 
and  have,  in  fact,  paid,  to  said  vendors  Cohen,  Reese,  and  others, 
the  sum  of  five  hundred  thousand  dollars,  (1500,000)  in  United 
States  gold  coin,  which  said  sum  has  been  and  was  wholly  paid  out 
of  the  funds  and  assets  of  the  said  C.  P.,  so  as  aforesaid  realized 
and  appropriated  to  their  own  use  by  the  said  defendants,  Stanford, 
Huntington,  Hopkins,  Charles  and  E.  B.  Crocker,  as  contractors 
as  aforesaid,  in  the  name  of  Charles  Crocker  &  Co.,  and  in  the 
name  of  the  said  Contract  and  Finance  Company,  and  as  managers 
of  the  said  C.  P. 

That  said  stock,  so  as  last  aforesaid  acquired  and  purchased  by 
said  last  mentioned  defendants,  is  held  by  them  in  trust  for  said  C. 
P.  and  its  stockholders. 

That  the  said  last  named  defendants,  by  means  of  said  last 
mentioned  purchase,  and  since  consummating  the  same,  have  elect- 
ed their  own  confederates  and  employees  and  some  of  themselves 
directors  of  said  San  Francisco  and  Oakland  Railroad  Company, 
and  have,  since  said  last  mentioned  day,  been  running  and  opera- 
ting said  last  mentioned  railroad  and  ferry  for  the  transportation 
of  freight  and  passengers,  in  connection  with  said  branch  of  said 
W.  P.,  said  W.  P.  and  said  C.  P.,  and  have  received  and  realized 
as  net  proceeds  of  running  the  same  about  $30,000  per  month,  gold 
coin. 

That  out  of  the  assets  of  the  said  C.  P.,  the  profits  and  gains  of 
running  the  said  branch  and  said  San  Francisco  and  Oakland  rail- 
road and  ferry,  the  said  defendants,  Leland  Stanford,  Huntington, 
Hopkins,  Charles  and  E.  B.  Crocker,  have  expended,  in  extending 
into  the  bay  of  San  Francisco  a  wharf  and  pile  track,  in  the  di- 
rection from  Oakland  toward  San  Francisco,  about  the  sum  of 
nine  hundred  thousand  dollars,  ($900,000)  and  which  extension 
was  designed  to  be  an  extension  of  said  San  Francisco  and  Oak- 
land Railroad,  and  is  designed  to  connect  the  city  of  Oakland  with 
Goat  Island,  in  the  bay  of  San  Francisco,  by  a  railroad. 


[31] 


40. 


That  the  San  Francisco  and  Alameda  Railroad  Company  is  and 
has  been,  for  three  years  last  past,  a  corporation  duly  organized, 
created,  and  existing  under  the  laws  of  the  State  of  California, 
and  heretofore,  to  wit,  on  the  first  day  of  August,  1869,  was  the 
owner,  possessed  of,  and  engaged  in  running  a  railway,  and  trans- 
porting freight  and  passengers  from  Haywards,  Alameda  County, 
to  the  end  of  the  Alameda  Wharf,  in  said  county,  and  from  thence 
to  the  city  and  county  of  San  Francisco  by  means  of  ferry  boats 
by  it  owned.  That  on  the  day  and  year  last  aforesaid,  as  plaintiff 
was  informed  and  believes,  and  therefore  avers,  upon  and  according 
to  his  information  and  belief,  Alfred  A.  Cohen,  E.  B.  Mastick, 
Charles  Minturn,  Edward  Minturn,  and  F.  D.  Atherton  were  the 
owners  of  all  the  capital  stock  of  said  last  mentioned  corporation, 
and  on  the  day  and  year  last  aforesaid,  at  the  city  and  county  of 
San  Francisco  aforesaid,  contracted  to  sell  and  assign,  and  did  sell 
and  assign,  to  defendants,  Leland  Stanford,  Huntington,  Hopkins, 
Charles  and  E.  B,  Crocker,  and  their  confederates,  unknown  to 
plaintiff,  all  of  the  capital  stock  of  said  last  mentioned  corporation, 
for  some  sum  and  consideration  to  plaintiff  unknown,  but  which, 
upon  and  according  to  his  information  and  belief,  he  avers  to  be, 
and  to  have  been,  for  the  sum  of  five  hundred  thousand  dollars 
($500,000). 

That  on  the  day  and  year  last  aforesaid,  the  railroad,  rolling- 
stock,  and  equipment,  wharves,  ships,  and  ferry  boats  of  the  said 
San  Francisco  and  Alameda  Railroad  Company,  were  delivered  to 
and  accepted  by  the  said  defendants,  Leland  Stanford,  Hunting- 
ton, Hopkins,  Charles  and  E.  B.  Crocker,  and  since  said  day  said 
railroad  has  been  run,  managed,  and  controlled  by  said  last  men- 
tioned defendants  for  their  own  benefit,  profit,  and  advantage,  and 
they  have  received  and  realized  therefrom  large  gains  and  net 
profits,  to  wit,  ten  thousand  dollars  ($10,000)  per  month,  gold 
coin,  and  threaten  to  continue  to  run,  control,  and  manage  the 
same,  and  to  appropriate  the  proceeds  thereof  to  their  own  use. 

That  said  last  mentioned  purchase  was  made  and  has  been  paid 


[32.] 

for,  by  said  last  mentioned  defendants,  with  the  moneys  and  assets 
of  the  said  C.  P.,  and  with  the  moneys,  gains,  and  profits  so  as 
aforesaid  received,  realized,  and  appropriated  to  their  use  by  the 
said  last  named  defendants  and  their  confederates,  under  the 
names  respectively  of  "Charles  Crocker  &  Co.,"  and  said  "  Con- 
tract and  Finance  Company." 


41. 


That  as  plaintiff  is  informed  and  believes,  and  therefore  avers, 
upon  and  according  to  his  information  and  belief,  all  the  expend- 
itures made  in  the  construction  of  the  said  W.  P.  Railroad  and 
Telegraph  line,  and  said  branch  thereof,  and  in  the  purchase  of 
said  San  Francisco  and  Oakland  Railroad  Company  stock,  and  said 
San  Francisco  and  Alameda  Railroad  Company  stock,  and  in  the 
construction  of  said  hereinbefore  mentioned  extension  of  wharf  and 
pile  track,  and  all  the  expenses  of  running  and  managing  said  last 
mentioned  railroads,  ferries,  and  telegraph  lines,  have  been  by  said 
Leland  Stanford,  Huntington,  Hopkins,  Charles  andE.  B.  Crocker, 
and  their  confederates,  charged  to,  and  now  are  charged  to,  the 
construction  account  of  said  C.  P.,  and  to  the  running  expenses  of 
said  C.  P. 


42. 

That  on  or  about  the  25th  day  of  June,  1870,  the  said  San  Fran- 
cisco and  Oakland  Railroad  Company,  and  the  said  San  Francisco 
and  Alameda  Railroad  Company,  merged  and  consolidated  their 
capital  stock,  debts,  assets,  and  franchises,  under  the  name  of  the 
"  San  Francisco,  Oakland,  and  Alameda  Railroad  Company,"  with 
a  capital  stock  of  two  million  of  dollars,  divided  into  twenty  thous- 
and shares,  of  a  par  value  of  one  thousand  dollars  each.  That  on 
or  about  the  first  w  of  July,  1870,  the  said  Leland  Stanford, 
Huntington,  Hopkins,  Charles  and  E.  B.  Crocker,  being  then  the 
holders  of  nearly  all  the  stock  of  the  said  San  Francisco,  Oakland, 
and  Alameda  Railroad  Company,  except  about  fifty  shares  thereof, 


[33] 

procured  the  acting  President  and  Secretary  of  said  corporation  to 
execute  in  the  name  of  said  corporation  fifteen  hundred  bonds,  for 
the  sum  of  one  thousand  dollars  each,  gold  coin  of  the  United 
States  of  America,  payable  in  twenty  (20)  years  from  the  said  first 
day  of  July,  1870,  with  interest  thereon  at  the  rate  of  eight  per 
cent,  per  annum,  payable  semi-annually.  And  to  secure  the  pay- 
ment of  said  bonds,  and  the  interest  thereon,  the  said  Leland  Stan- 
ford, Huntington,  Hopkins,  Charles  and  E.  B.  Crocker,  further  pro. 
cured  the  acting  Secretary  and  President  of  said  San  Francisco, 
Oakland,  and  Alameda  Railroad  Company,  to  make  and  execute 
and  deliver,  in  the  name  of  and  under  the  seal  of  said  company 
to  D.  0.  Mills  and  William  H.  Tillinghast,  trustees,  a  mortgage 
upon  all  the  property  and  assets  and  franchises  of  said  company. 
And  plaintiff  avers  that  said  bonds  are  now  held  by  said  Leland 
Stanford,  Huntington,  Hopkins,  and  Charles  Crocker,  and  Charles 
Crocker  as  the  executor  of  the  estate  of  E.  B.  Crocker,  deceased, 
who  claim  to  be  the  owners  thereof.  And  that  the  said  last 
mentioned  defendants  hold  the  same  in  trust  for  the  said  C.  P. 


43. 

That  the  San  Francisco  and  San  Jose  Railroad  Company  is, 
and  has  been  for  the  six  years  last  past,  a  corporation  created  and 
existing  under  the  laws  of  the  State  of  California,  and  having  its 
principal  place  of  business  at  the  city  and  county  of  San  Francisco, 
and  is  the  owner  of  a  railroad  from  the  city  and  county  of  San 
Francisco  to  the  town  of  Gilroy,  in  Santa  Clara  County,  together 
with  the  necessary  furniture,  equipments,  turn-tables,  switches, 
side  tracks,  depots,  ware-houses,  etc.,  connected  therewith. 


44. 


That  the  Southern  Pacific  Railroad  is,  and  has  been  for  three 

years  and  upwards,  last  past,  a  corporation  duly  organized,  created, 

and  existing  under  the  laws  of  the  State  of  California,  having  its 

principal   place  of  business   at  the  said  city  and  county  of  San 

3 


[34] 

Francisco,  for  the  construction  and  maintenance  of  a  railway  from 
the  Mississippi  river,  by  way  of  San  Diego,  to  the  city  and  county 
of  San  Francisco.  That  under  and  by  various  laws  of  the  United 
States  and  of  the  State  of  California,  mentioned  and  referred  to  in 
Schedule  B,  hereunto  annexed  and  made  a  portion  of  this  com- 
plaint, the  said  corporation  last  mentioned  has  become,  and  is,  en- 
titled to  large  subsidies  and  grants  of  land  of  great  value,  to  wit, 
of  the  value  of  two  million  dollars  and  upwards. 

That  said  defendants,  Leland  Stanford,  Huntington,  Hopkins, 
Charles  and  E.  B.  Crocker,  and  David  D.  Colton,  and  their  con- 
federates, to  plaintiff  unknown,  have  by  the  use  of  means,  moneys, 
and  assets  of  the  said  C.  P.,  and  the  gains  and  profits  so  as  afore- 
said acquired  by  them  under  the  name  of  Charles  Crocker  &  Co., 
and  under  the  name  of  said  Contract  and  Finance  Co.,  and  not 
otherwise,  purchased  and  acquired,  on  or  about  the  20th  day  of 
December,  1869,  a  majority  of,  and  almost  the  entire  amount 
of,  the  capital  stock  of  the  said  Southern  Pacific  Railroad  Company. 


45. 

That  immediately  thereafter,  and  on  or  about  the  first  of 
March,  1870,  with  the  intent  and  design  of  making  said  San  Fran- 
cisco and  San  Jose  Railroad  Company's  road  a  part  of  the 
contemplated  railway  to  be  constructed  by  said  Southern  Pacific 
Railroad  Company,  from  the  Mississippi  River  aforesaid  to  the  City 
and  County  of  San  Francisco  aforesaid,  the  said  Leland  Stanford, 
Huntington,  Hopkins,  Charles  and  E.  B.  Crocker  contracted  with 
the  said  San  Francisco  and  San  Jose  Railroad  Company  and  its 
stockholders,  to  purchase  in  the  name  of  the  Southern  Pacific 
Railroad  Company,  and  for  their  benefit,  the  railroad  franchises, 
privileges,  furniture,  and  equipments  of  said  San  Francisco  and 
San  Jose  Railroad  Company,  and  its  capital  stock,  for  a  large 
sum  of  money,  to  wit,  three  millions  of  dollars :  and  on  or  about 
the  first  of  April,  1870,  as  plaintiff  is  informed,  and  believes,  and 
therefore  avers,  upon  his  information  and  belief,  paid  to  said  San 
Francisco  and  San  Jose  Railroad   Company  and  its  stockholders, 


[35] 

to  wit,  Charles  Mayne,  Peter  Donahue,  H.  M.  Newhall,  and 
others  to  the  plaintiff  unknown,  five  hundred  thousand  dollars — 
part  and  parcel  of  said  three  million  dollars — and  have  since  paid 
the  balance  of  said  sum  of  three  million  dollars. 

That  said  last  payments  were  made  by  the  appropriating  thereto 
of  the  assets  of  said  C.  P.,  and  the  moneys,  profits,  and  gains  of 
said  defendants,  Leland  Stanford,  Huntington,  Hopkins,  Charles 
and  E.  B.  Crocker,  so  as  aforesaid  acquired  under  the  name  of 
Charles  Crocker  &  Co.,  and  under  the  name  of  said  Contract  and 
Finance  Company,  and  not  otherwise. 

That  said  defendant,  David  D.  Colton,  claims  to  be  the  owner  of 
and  entitled  to  some  portion  of  the  capital  stock  of  said  Southern 
Pacific  Railroad  Company,  but  of  how  much,  plaintiff  is  not  advised. 
But  as  plaintiff  is  informed  and  believes,  and  therefore  avers  upon 
and  according  to  his  information  and  belief,  the  said  Colton  has 
made  no  payment  therefor. 

That  since  said  purchase,  so  as  aforesaid  in  this  article  set  forth, 
the  said  defendants,  Leland  Stanford,  Huntington,  Hopkins,  and 
Charles  Crocker  have,  as  plaintiff  is  informed  and  believes,  and 
therefore  avers  upon  and  according  to  his  information  and  belief, 
by  and  through  a  certain  corporation  known  as  the  "  Western 
Development  Company,"  constructed  and  built  a  certain  line  of 
railroad  from  Gilroy  to  Tres  Pinos,  about  twenty  (20)  miles  in 
length.  And  also  have  constructed  and  built  a  certain  other 
railroad,  from  a  point  about  one  and  a  half  miles  south  of  Gilroy 
to  Soledad,  about  seventy  (70)  miles  in  length.  And  also,  a 
certain  other  railroad,  from  a  point  about  six  miles  below  Los  An- 
geles to  Anaheim,  about  twenty-one  (21)  miles  in  length.  Also, 
a  certain  other  railroad  from  Los  Angeles  to  San  Fernando,  about 
twenty-four  (24)  miles  in  length.  Also,  a  certain  other  railroad 
from  Los  Angeles,  via  San  Gorgonia  Pass  to  White  Water,  about 
eighty-five  (85)  miles  in  length. 

And  that  the  said  Leland  Stanford,  Huntington,  Hopkins,  and 
Crocker  are  now  engaged  in  extending  such  road  to  F'ort  Yuma, 
on  the  Colorado  River.  Also,  a  certain  other  railroad,  from  Goshen 
to  Caliente — a  distance  of  one  hundred  and  fifteen  (115)  miles. 
All  of  which  said  railroads,  in  this  paragraph  set  forth,  are  claimed 
to  belong  to  and  form  a  part  of  the  said  Southern  Pacific  Railroad. 


[36] 

And  plaintiff  avers,  that  all  said  railroads  in  this  paragraph 
mentioned  have  been  built  by  appropriating  thereto  the  assets  of 
the  said  C.  P.,  and  the  moneys,  profits,  and  gains  of  said  defend- 
ants, Leland  Stanford,  Huntington,  Hopkins,  Charles  and  E.  B. 
Crocker,  so  as  aforesaid  acquired  under  the  name  of  Charles 
Crocker  &  Company,  and  the  name  of  the  said  "  Contract  and 
Finance  Company,"  and  not  otherwise.  And  that  said  roads 
are  nearly  all,  if  not  entirely,  operated  by  and  with  locomotives 
and  cars  belonging  to  the  said  C.  P. 


46. 


That  the  Potrero  and  Bay  View  Railroad  Company  is  .and  has 
been  for  three  years  last  past,  a  corporation  duly  organized  and  ex- 
isting under  the  laws  of  the  State  of  California.  And  heretofore, 
to  wit,  on  or  about  the  first  of  March,  1873,  was  the  owner  and  pos- 
sessed of  certain  line  of  street  railroad  in  the  city  and  county  of 
San  Francisco.  And  wras  also  the  owner  of  a  long  and  valuable 
bridge  in  said  city  and  county  of  San  Francisco,  known  as  Mission 
Bay  Bridge,  over  which  the  cars  of  said  last  mentioned  corporation 
run  for  hire.  And  that  said  corporation  owns  a  franchise  under 
which  it  is  entitled  to  receive  and  does  receive  tolls  for  vehicles 
and  animals  passing  over  said  bridge. 

That  on  said  last  mentioned  day,  as  plaintiff  is  informed  and  be- 
lieves, and  therefore  avers,  according  to  his  information  and  belief, 
the  said  Leland  Stanford,  Huntington,  Hopkins,  Charles  and  E. 
B.  Crocker,  purchased  all  the  capital  stock  of  said  corporation,  and 
have  ever  since  and  do  now  claim  to  be  the  owners  thereof.  That 
the  earnings  of  the  said  corporation  since  the  said  last  mentioned 
day,  amounting,  as  plaintiff  is  informed  and  believes,  to  the  sum  of 
,  five  thousand  dollars  per  month,  have  been  controlled  and  used  by 
said  last  mentioned  defendants  for  their  own  benefit,  profit,  and  ad- 
vantage. 

That  said  last  mentioned  purchase  was  made  and  has  been  paid 
for  by  said  last  mentioned  defendants  with  the  moneys  and  assets 
of  the  said  C.  P.,  and  with  the  moneys,  gains,  and  profits  so  as 


[37] 

aforesaid  realized  and  appropriated  thereto  by  the  said  last  named 
defendants,  under  the  names,  respectively,  of  u  Charles  Crocker  & 
Company,"  and  the  said  "  Contract  and  Finance  Company,"  and 
not  otherwise. 


47. 


That  the  plaintiff  is  informed  and  believes,  and  therefore  avers, 
upon  and  according  to  his  information  and  belief,  there  has  not 
been  any  meeting  of  the  stockholders  of  the  said  C.  P.,  since  the 
first  annual  meeting,  at  which  the  said  Leland  Stanford,  Hunting- 
ton, Hopkins,  Charles  and  E.  B.  Crocker,  and  their  confederates, 
were  elected  directors  of  said  C.  P.,  and  ever  since  the  second 
Tuesday  of  July,  in  the  year  A.  D.  1862,  the  entire  management 
and  control  of  said  C.  P.,  its  assets  and  subsidies,  have  Jbeen  ex- 
ercised by  the  last  named  defendants,  secretly,  and  without  having 
made  any  statement  or  statements  of  the  receipts  thereof,  or  of  the 
true  expenditures  made  by  it  or  its  officers,  to  the  plaintiff,  or  to 
any  stockholder  or  stockholders  of  said  C.  P. 


48. 


That  the  said  C.  P.  is  now  under  the  management  and  control 
of  said  Leland  Stanford,  Huntington,  Hopkins,  Charles  and  E.  B. 
Crocker,  and  their  confederates,  who  compose  a  majority  of  the 
directors  of  the  said  C.  P.,  and  as  they  claim  and  assert,  a  majority 
of  the  stockholders  of  the  said  C.  P.,  and  who  have  refused,  and 
though  requested,  still  refuse,  and  said  C.  P.  has  refused,  and 
though  re-requested,  still  refuses,  to  institute  this  action,  or  any 
similar  action,  or  make  any  inquiry  into,  or  any  showing  of  the  dis- 
position of,  the  earnings,  assets,  and  subsidies  of  said  C.  P. 


49. 


That  the  San  Joaquin  Valley  Railroad  Company  is  a  corpora- 
tion, created  under  the  laws  of  the  State  of  California  ;  that  with 


L  38  J 

the  assets  of  said  C.  P.,  so  as  aforesaid  acquired  by  said  Charles 
Crocker,  E.  B.  Crocker,  Leland  Stanford,  Huntington,  and  Hop- 
kins, and  their  confederates,  the  said  last  mentioned  corporation 
was  organized,  and  said  last  mentioned  persons  have  acquired  a 
•majority  of  its  capital  stock,  and  have  procured  to  be  granted  to 
it  large  subsidies  and  gifts  of  land  of  great  value,  to  wit,  of  the 
value  of  three  million  dollars  (83,000,000). 


50. 


That  the  California  and  Oregon  Railroad  Company  is  a  corpora- 
tion, created  under  the  laws  of  the  State  of  California,  with  the 
assets  of  said  C.  P.,  so  as  aforesaid  acquired  by  the  said  Charles 
Crocker,  E.  B.  Crocker,  Leland  Stanford,  Huntington,  and  Hop- 
kins, and  their  confederates,  under  the  name  of  said  Contract 
and  Finance  Company ;  and  by  the  arts,  devices,  and  fraudulent 
practices  hereinbefore  mentioned,  said  last  named  persons  have 
acquired,  and  now  claim  to  own,  a  majority  of  its  capital  stock 
of  great  value,  to  wit,  to  the  value  of  two  millions  of  dollars 
(12,000,000). 


51, 


That  on  or  about  the  1st  day  of  June,  1870,  the  said  C.  P.  and 
the  said  W.  P.,  under  and  in  pursuance  of  the  laws  of  the  State  of 
California,  amalgamated  and  consolidated  their  capital  stocks,  debts, 
assets,  and  franchises,  and  formed  a  new  corporation  under  the 
name  of  the  Central  Pacific  Railroad  Company,  and  that  on  the 
20th  day  of  August,  1870,  the  said  last  named  corporation  and 
the  said  The  California  and  Oregon  Railroad  Company^  and  the 
said  The  San  Joaquin  Valley  Railroad  Company,  and  the  said  The 
San  Francisco,  Oakland,  and  Alameda  Railroad  Company,  amal- 
gamated and  consolidated  their  debts,  assets,  and  franchises,  in 
manner  and  form  as  is  provided  by  the  laws  of  the  State  of  Cali- 
fornia, under  the  name  of  The  Central  Pacific  Railroad,  and  that 


[39] 

said  last  named  corporation  assumed  and  became  liable  for  all  the 
debts  and  liabilities  of  all  the  corporations  in  this  paragraph  men- 
tioned. 


52. 


That  all  the  railroads  which  the  defendant  corporations, 
named  in  this  complaint,  were  organized  to  build,  and  the 
capital  stock  of  which,  respectively,  the  said  defendants  Leland 
Stanford,  Huntington,  Hopkins,  Charles  and  E.  B.  Crocker  and 
their  confederates,  claim  to  hold  and  own,  and  have  purchased  and 
subscribed  for,  as  aforesaid,  with  the  moneys  of  the  said  C.  P., 
appropriated  by  them  as  aforesaid,  and  acquired  by  them  as  afore- 
said, in  the  name  of  Charles  Crocker  &  Co.,  and  in  the  name  of 
said  Contract  and  Finance  Company,  are  and  will  be  entitled  to 
large  and  valuable  subsidies,  franchises,  privileges,  and  properties. 
That  the  said  last  mentioned  railroads  and  corporations  have  been 
organized  and  established,  and  procured  to  be  organized  and  estab- 
lished, by  the  said  Leland  Stanford,  Huntington,  Hopkins,  Charles 
and  E.  B.  Crocker,  while  acting  as  directors  of  the  said  C.  P. 
for  their  own  personal  benefit  and  advantage,  with  the  moneys  and 
assets  of  said  C.  P.  by  them  misapplied  for  that  purpose,  and 
which  in  justice  and  equity  belong  to  the  stockholders  of  said  C.  P. 

And  said  Leland  Stanford,  Huntington,  Hopkins,  Charles  and 
E.  B.  Crocker,  procured  themselves  to  be  elected  directors  of  said 
last  named  corporations,  respectively,  and  have  procured  for  said 
last  mentioned  corporations,  from  the  Congress  of  the  United 
States,  and  by  State  laws,  grants  of  large  and  valuable  subsidies  of 
lands,  moneys,  and  bonds,  with  intent  to  appropriate  the  same  to 
their  own  use  and  benefit,  and  in  violation  of  the  rights  of  said  C. 
P.  and  its  stockholders. 

That  in  procuring  said  railroad  companies  to  be  organized,  and 
themselves  to  become  stockholders  and  directors  thereof,  and  said 
subsidies  to  be  granted  as  aforesaid,  they  have  expended  large 
amounts  of  money,  to  wit,  one  million  dollars  ($1,000,000)  and 
upwards,  moneys  of  the  said  C.  P.,  and  which  injustice  and  equity 
belong  to  said  C.  P.  and  its  stockholders.     That  the  same  was  ex- 


[40] 

pended  in  lobbying  and  buying  congressional  and  legislative  votes 
and  in  perverting  legislation  in  favor  of  their  said  schemes.  That 
some  of  the  coporations  heretofore  mentioned,  to  wit,  said  Southern 
Pacific  Railroad  Company,  and  said  San  Joaquin  Valley  Railroad 
Company,  and  said  California  and  Oregon  Railroad  Company, 
have  been  organized  and  established  by  said  defendants,  Leland 
Stanford,  Huntington,  Hopkins,  Charles  and  E.  B.  Crocker  for  the 
purpose  of  preventing  all  competition  with  other  schemes  conceived 
by  them  for  their  private  emolument,  and  in  fraud  of  the  said  C.  P. 
and  its  stockholders. 


53. 


That  the  plaintiff  has  received  no  dividends  upon  the  shares  of 
the  said  capital  stock  of  said  C.  P.,  so  as  aforesaid  owned  by  him, 
although  the  plaintiff,  as  a  stockholder,  as  aforesaid,  has  often  re- 
quested the  said  Leland  Stanford,  Huntington,  Hopkins,  Charles 
and  E.  B.  Crocker,  composing  a  majority  of  the  directors  of  said 
C.  P.,  to  make  a  settlement  and  declare  a  dividend  from  the  as- 
sets of  the  C.  P.,  after  deducting  the  actual  cost  of  the  construction 
of  the  railroad  and  telegraph  line. 

The  plaintiff  avers  that  he  is  informed  and  believes,  and  upon 
and  according  to  his  information  so  avers,  that  a  dividend  of  one 
hundred  million  dollars  might  be  declared  and  divided  among  the 
stockholders  of  said  C.  P.,  still  leaving  a  large  sinking  fund  and 
surplus  in  the  hands  of  the  Treasurer  of  the  said  C.  P.,  if  said  de- 
fendants Leland  Stanford,  Huntington,  Hopkins  and  Crocker,  and 
their  confederates,  would  make  an  honest  and  correct  statement 
and  showing  of  the  actual  cost  of  the  construction  of  the  railroad 
and  telegraph  lines  of  the  C.  P.,  and  deduct  the  same  from  the 
amount  of  assets,  subsidies,  profits,  etc.,  of  the  said  C.  P.,  over  and 
above  all  lands  granted  to  it  by  the  said  United  States  and  received 
by  the  said  Stanford,  Huntington,  Hopkins,  Charles  and  E.  B. 
Crocker,  in  the  name  of  Charles  Crocker  &  Company,  and  the  said 
"Contract  and  Finance  Company,"  and  divided  among  themselves. 

That,  although  frequently  requested,  the  said  majority  of  the 
directors  of  the  said  C.  P.  have   heretofore  refused  and  still  do  re- 


[41] 

fuse  to  account  to  the  said  C.  P.  and  its  stockholders,  in  any 
manner,  for  their  actings,  doings,  and  expenditures  spent  in  furnish- 
ing, equipping,  and  operating  the  railroad  and  telegraph  line  of  the 
said  C.  P.,  or  of  the  disposition  made  by  them  of  the  subsidies, 
moneys,  properties,  earnings,  and  assets  received  by  them  in  the 
name  or  through  the  said  C.  P. 

54. 

That  heretofore,  to  wit,  on  the 
day  of  the  said  C.  P.,  by  the  votes  of  said 

so  claimed  directors,  Leland  Stanford,  Charles  and  E.  B.  Crocker, 
Huntington  and  Hopkins,  appeared  to  determine  to,  and  did,  exe- 
cute and  deliver  to  trustees  therein  named  a  first  mortgage  on  its 
road,  telegraph  line,  franchises,  rolling  stock,  etc.,  to  secure  bonds 
to  the  amount  of  (127,389,120)  twenty-seven  million  three  hun- 
dred and  eighty-nine  thousand  one  hundred  and  twenty  dollars. 

That  said  mortgage  was  so  executed  and  delivered,  and  said 
bonds  were  so  caused  to  be  issued  by  said  so  claimed  directors,  as 
though  issued  by  said  C.  P.,  with  the  secret  design  and  intent,  on 
the  part  of  said  Leland  Stanford,  Charles  and  E.  B.  Crocker, 
Huntington  and  Hopkins,  to  secure  said  bonds  to  themselves,  and 
they  have  secured  a  majority  thereof,  to  wit,  twenty-two  millions  of 
dollars,  (122,000,000),  to  themselves,  without  ever  having  paid 
or  delivered  to  said  C.  P.  any  money  or  valuable  consideration 
therefor,  and  now  claim  to  own  and  hold  the  same  ;  that  said  Leland 
Stanford,  Charles  and  E.  B.  Crocker,  Huntington  and  Hopkins,  at 
the  time  of  voting  as  directors  of  said  C.  P.  to  execute  said  first 
mortgage  bonds,  and  at  the  time  of  forming  the  design  of  securing 
the  bonds  to  themselves  so  secured  as  aforesaid,  formed  the  design, 
and  it  is  now  their  purpose  and  intent,  as  the  holders  of  a  majority 
thereof,  to  foreclose  said  first  mortgage  and  purchase  said  railroad 
and  telegraph  line  for  their  benefit,  and  thereby  to  defraud  the 
holders  of  the  second  mortgage  bonds  of  the  said  C.  P.,  to  wit,  the 
United  States  Government  and  other  parties  and  persons  holders 
thereof,  to  plaintiffs  unknown,  and  this  plaintiff  and  the  other  stock- 
holders of  said  C.  P.  out  of  any  dividends,  benefit,  or  other  interest 
in  said  railroad  and  telegraph  line. 


[42] 

That  to  the  end  aforesaid,  and  in  carrying  out  said  secret  design 
and  intent,  among  other  things,  said  last  mentioned  directors  entered 
into  said  contract  with  Wells,  Fargo  &  Co.  to  run  over  said  road, 
at  much  less  rate  than  they  charge  other  freighters  and  transporters, 
and  also  have  concealed,  and  do  now  conceal,  the  actual  running 
expenses  of  said  road  and  its  actual  receipts.  That  said  first  mort- 
gage purports  to  be,  and  said  Leland  Stanford,  Charles  and  E.  B. 
Crocker,  Huntington,  and  Hopkins,  assert  and  pretend  that  the 
same  is,  a  valid  and  binding  security  upon  said  railroad  and  tele- 
graph line,  the  franchises,  equipments,  etc.,  and  that  it  was  neces- 
sary to  issue  the  said  bonds  and  execute  said  mortgage  to  secure 
the  same  in  order  to  construct  said  road.  Whereas,  in  truth  and  in 
fact,  the  said  several  donations  and  subsidies  hereinbefore  granted 
to  said  C.  P.  were  sufficient,  and  more  than  sufficient,  to  build  and 
construct  said  railway  and  telegraph  line  without  using  any  of  said 
first  mortgage  bonds,  and  none  thereof  were  used,  in  the  construc- 
tion, completion,  equipping,  and  furnishing  thereof,  but,  on  the 
contrary,  the  same  were  fraudulently  issued  and  delivered  to  said 
Leland  Stanford,  Hopkins,  Huntington,  Charles  and  E.  B.  Crocker, 
as  said  "  Charles  Crocker  &  Company,"  and  said  u  Contract  and 
Finance  Company,"  and  were  and  are  wholly  void. 

That  on  or  about  the  10th  day  of  April,  1870,  one  Samuel 
Brannan,  being  then  the  owner  of  200  shares  of  the  capital  stock 
of  the  said  C.  P.,  and  being  about  to  commence  proceedings  by 
an  action  to  compel  the  said  defendants,  Leland  Stanford,  Hunting- 
ton, Hopkins,  Charles  and  E.  B.  Crocker,  to  account  to  him  for 
and  in  respect  to  the  earnings  of  the  said  C.  P.,  and  the  manage 
ment  of  its  affairs,  and  said  defendants,  Stanford,  Huntington, 
Hopkins,  Charles  and  E.  B.  Crocker,  learning  thereof,  procured 
from  the  attorney  of  the  said  Brannan  a  draft  and  a  copy  of  the 
complaint  intended  to  be  filed,  and  thereafter  filed  by  and  on  the 
part  of  said  Brannan. 

That  in  order  to  cover  up  their  fraudulent  practices  and  busi- 
ness, and  to  still  keep  control  of  the  said  C.  P.  corporation,  and  to 
prevent  the  said  Brannan  and  this  plaintiff  and  other  stockholders 
thereof  from  inquiring  into  and  ascertaining  the  true  condition  of 
its  assets,  and  the  disposition  thereof  made  by  them,  and  to  re-elect 


[43] 

themselves  as  directors,  the  said  Huntington,  Hopkins,  Charles 
and  E.  B.  Crocker,  and  Leland  Stanford,  in  the  name  of  and  by  the 
agency  of  D.  0.  Mills  &  Co.,  and  really  for  their  benefit,  since  the 
said  10th  day  of  April,  1870,  purchased  and  had  transferred  and 
assigned  to  the  said  D.  0.  Mills  &  Co.,  3,000  shares  of  the  capital 
stock  of  C.  P.,  so  issued  to  the  city  and  county  of  Sacramento, 
and  said  2,500  shares  so  as  aforesaid  issued  to  said  county  of  Placer. 

That  the  said  D.  O.  Mills  &  Company,  although  apparently  the 
real  actors  in  such  purchase,  were  secretly  acting  therein,  and  were 
instigated  to  act  therein  by  and  for  the  benefit  of  said  Stanford, 
Huntington,  Hopkins,  Charles  and  E.  B.  Crocker,  the  same  last 
named  persons ;  and  upon  the  agreed  secret  understanding  and 
agreement  between  the  last  named  persons,  or  some  of  them,  on 
the  one  part,  and  the  said  D.  0.  Mills  &  Company  upon  the  other 
part,  and  to  the  effect  that  the  saidD.  0.  Mills  &  Company  would 
hold  the  stock  thus  transferred  to  the  latter,  in  secret  trust  for 
the  said  Stanford,  Huntington,  Hopkins,  Charles  and  E.  B.  Crocker, 
or  some  of  them ;  and  would  transfer  the  same  to  them,  or  some 
of  them,  when  thereto  afterwards  requested;  and  would  in  the 
meantime  cause  the  same  to  be  used  as  should  be  requested  by 
said  Stanford,  Huntington,  Hopkins,  Charles  and  E.  B.  Crocker. 

That  as  plaintiff  is  informed  and  believes,  and  therefore  charges 
and  avers,  upon  and  according  to  his  information  and  belief,  that 
in  order  to  induce  said  D.  0.  Mills  &  Co.  to  appear  to  purchase 
the  said  55,000  shares  of  said  capital  stock,  and  to  secure  said  D. 
0.  Mills  against  a  loss,  said  Stanford,  Huntington,  Hopkins, 
Charles  and  E.  B.  Crocker,  or  some  of  them,  deposited  with  said  D. 
0.  Mills  &  Co.,  or  with  some  person  or  persons,  to  the  plaintiff  un- 
known, in  trust  for  D.  0.  Mills  &  Co.,  150,000  of  the  first  mort- 
gage bonds  of  the  said  C.  P.  corporation,  and  there  now  exists, 
or  did  exist,  a  secret  and  binding  agreement  between  the  said  D. 
0.  Mills  &  Co.  on  the  one  part,  and  the  said  Stanford,  Huntington, 
Hopkins,  Charles  and  E.  B.  Crocker,  or  some  of  the  last  named 
persons,  on  the  other  part,  to  the  effect  that  the  said  last  named 
persons  would  pay  to  the  said  D.  0.  Mills  &  Co.  for  said  stock, 
the  amount  paid  in  advance  by  them  to  purchase  the  same,  with 
interest  at  the  rate  of  one  per  cent,  per  month  on  such  advance 
when  thereto  afterwards  requested. 


[44] 

That  at  the  time  said  D.  0.  Mills  &  Co.  purported  to  have  pur- 
chased said  55,000  shares,  they  had  been  informed  by  the  aver- 
ments in  the  complaint  of  said  Brannan  as  above  set  forth,  and 
had  been  informed  thereof  by  the  defendant,  Leland  Stanford. 


55. 


That  some  time  in  the  year  1869,  the  said  defendants,  Leland 
Stanford,  Huntington,  Hopkins,  and  Crocker,  being  then  engaged 
in  a  controversy  with  a  certain  newspaper,  known  as  the  "  Sac- 
ramento Union,''  and  published  at  the  city  of  Sacramento,  in  this 
State,  for  the  purpose,  as  plaintiff  is  informed  and  believes,  and 
avers,  upon  and  according  to  his  information  and  belief,  of  injuring 
and  destroying  the  prosperity  of  said  u  Sacramento  Union,"  estab- 
lished or  purchased  a  certain  newspaper  in  said  city  of  Sacramento, 
known  as  the  "  Sacramento  Record." 

That  for  the  purpose  of  enabling  said  "  Sacramento  Record  "  to 
injure  and  destroy  the  business  and  financial  credit  of  said  "  Sacra- 
mento Union,"  and  to  prevent  the  "  Sacramento  Union "  from 
printing,  publishing,  and  exposing  the  acts  and  doings  of  said  de- 
fendants Stanford,  J3untington,  Hopkins,  and  Crocker,  they,  the 
said  last  named  defendants,  advanced  from  time  to  time  to  the  de- 
fendants William  H.  Mills,  and  the  Sacramento  Publishing  Com- 
pany, and  other  persons  to  plaintiff  unknown,  a  large  sum  of  money, 
to  wit,  the  sum  of  $200,000  in  gold  coin. 

That  on  or  about  the  20th  day  of  February,  1875,  the  defend- 
ants the  Sacramento  Publishing  Company  and  William  H.  Mills 
purchased  the  said  newspaper  known  as  the  "  Sacramento  Union," 
and  the  good  will  and  property  thereof,  for  the  sum  of  fifty-five 
thousand  dollars,  and  plaintiff  avers  that  he  is  informed,  and  be- 
lieves, and  avers  upon  and  according  to  his  information  and  belief, 
that  the  said  sum  of  $55,000  was  paid  by  the  defendants  Stanford, 
Huntington,  Hopkins,  and  Crocker. 

That  the  said  defendants,  the  Sacramento  Publishing  Company 
and  William  H.  Mills,  claim  to  be  the  owners  of  said  newspapers, 
but  plaintiff  avers  that  the  same  are  held  in  trust  for  said  C.  P. 


[45] 

That  all  the  moneys  so  as  aforesaid  paid  by  said  defendants, 
Stanford,  Huntington,  Hopkins,  and  Crocker,  were  paid  from  the 
moneys  and  assets  of  said  C.  P.  derived  by  said  last  named  defend- 
ants under  the  name  of  Charles  Crocker  &  Co.  and  the  Contract 
and  Finance  Company,  and  not  otherwise. 

56. 

That  on  or  about  the  1st  of  January,  1871,  there  was  a  cor- 
poration existing  pursuant  to  the  laws  of  the  State  of  California, 
known  as  the  Oakland  Water  Front  Company.  The  property  of 
said  corporation  consisted  of  a  large  amount  of  property  situated 
on  the  water  front  of  the  City  of  Oakland  and  the  town  of  Brooklyn, 
and  the  town  of  Alameda — all  within  the  County  of  Alameda — of 
great  value,  to  wit,  the  value  of  five  million  dollars. 

That  plaintiff  is  informed  and  believes,  and  avers,  upon  and  ac- 
cording to  his  information  and  belief,  that  the  defendants,  Leland 
Stanford,  Huntington,  Hopkins,  Charles  and  E.  B.  Crocker,  pur- 
chased from  said  Oakland  Water  Front  Company  one-third  of  the 
capital  stock ;  and  the  same  has  been  delivered  by  the  said  last 
mentioned  defendants. 

That  the  said  purchase  was  made  by  said  last  mentioned  de- 
fendants with  the  moneys  and  assets  of  said  C.  P.,  and  with  the 
moneys,  gains,  profits,  so  as  aforesaid  received,  realized,  and  appro- 
priated to  their  use  by  the  said  last  named  defendants  under  the 
names,  respectively,  of  Charles  Crocker  &  Co.,  and  the  said  Con- 
tract and  Finance  Company,  and  not  otherwise. 

57. 

That  the  Rocky  Mountain  Coal  and  Iron  Company,  of  Wyoming 
Territory,  was  and  is  a  corporation  formed  and  existing  pursuant 
to  the  laws  of  the  Territory  of  Wyoming,  having  a  capital  stock  of 
one  million  of  dollars  divided  into  ten  thousand  shares  of  one 
hundred  dollars  each. 

That  plaintiff  is  informed  and  believes,  and  avers,  upon  and  ac- 
cording to  his  information  and  belief,  that  the   defendants,  Leland 


[46] 

Stanford,  Huntington,  Hopkins,  Charles  and  E.  B.  Crocker,  on  or 
about  the  first  day  of  July,  A.D.  1872,  purchased,  from  persons 
unknown  to  plaintiff,  about  eight  thousand  shares  of  the  capital 
stock  of  said  last  mentioned  corporation,  and  now  hold  the  same, 
and  claim  to  be  the  owners  thereof. 

That  the  dividend  upon  said  stock  has  been,  and  is,  eight  thous- 
and dollars  per  month. 

That  payment  for  the  said  stock  was  made  by  the  said  defend- 
ants, Leland  Stanford,  Huntington,  Hopkins,  Charles  and  E.  B. 
Crocker,  by  appropriating  the  earnings  and  profits  of  the  said  C. 
P.,  and  from  the  moneys,  gains,  and  profits,  so  as  aforesaid  received 
by  said  defendants  in  the  name  of  Charles  Crocker  &  Co.,  and  in 
the  name  of  the  Contract  and  Finance  Company,  and  not  other- 
wise. 


58. 


That  the  Los  Angeles  and  San  Pedro  Railroad  Company  was, 
and  is,  a  corporation  duly  organized,  created,  and  existing  under 
the  laws  of  the  State  of  California,  having  its  principal  place  of 
business  at  the  city  of  Los  Angeles,  and  on  or  about  the  last  day 
-of  February,  a.  d.  1873,was*  the  owner  of,  and  operating,  a  line 
of  railway  about  twenty-two  miles  in  length,  between  San  Pedro 
and  said  city  of  Los  Angeles,  both  in  the  county  of  Los  Angeles. 

The  above  said  day  and  year  last  aforesaid,  as  plaintiff  is  in- 
formed and  believes,  and  therefore  avers,  upon  and  according  to 
his  information  and  belief,  Henry  B.  Tichenor  and  others  were  the 
owners  of  the  capital  stock  of  said  last  mentioned  corporation,  and 
on  the  day  and  year  last  aforesaid,  did  sell  and  assign  all  of  said 
capita]  stock  to  defendants,  Leland  Stanford,  Huntington,  Hopkins, 
Charles  and  E.  B.  Crocker,  for  and  in  consideration  of  the  sum 
of  seven  hundred  and  fifty  thousand  dollars,  and  that  ever  since 
said  purchase  the  said  defendants,  Leland  Stanford,  Huntington, 
Hopkins,  Charles  Crocker,  and  Charles  Crocker,  executor  of  the 
estate  of  Ed.  Crocker,  deceased,  have  controlled  and  managed  the 
same,  and  have  appropriated  the  proceeds  thereof,  amounting  to 
twenty  thousand  dollars  per  month,  to  their  own  use. 


[47] 

That  said  last  mentioned  purchase  was  made,  and  has  been  paid 
for,  by  said  last  mentioned  defendants,  with  the  moneys  and  assets 
of  the  said  0.  P.,  and  with  the  moneys,  gains,  and  profits  so  as 
aforesaid  received,  realized,  and  appropriated  to  their  own  use  by 
said  last  named  defendants,  under  the  names  respectively'  of 
Charles  Crocker  &  Co.,  and  said  Contract  and  Finance  Company, 
and  not  otherwise. 


59. 

That  the  Market  Street  Railway  was  and  is  a  corporation  or- 
ganized and  existing  under  the  laws  of  the  State  of  California,  and 
on  or  about  the  first  day  of  March,  a.d.  1870,  was  the  owner  of 
a  line  of  street  railroad  on  Market  street,  in  the  city  and  county 
of  San  Francisco. 

That  on  said  day  and  year  last  aforesaid,  as  plaintiff  is  informed 
and  believes,  and  therefore  avers  upon  and  according  to  his  informa- 
tion and  belief,  Henry  M.  Newhall,  Charles  and  Peter  Donahue, 
were  the  owners  of  all  the  capital  stock  of  aforesaid  last  mentioned 
corporation,  and  on  the  day  and  year  last  aforesaid  did  sell  and 
assign  all  of  said  capital  stock  to  defendants  Leland  Stanford, 
Huntington,  Hopkins,  Charles  and  E.  B.  Crocker,  for  and  in  consid- 
eration of  the  sum  of  three  hundred  thousand  dollars,  and  that  ever 
since  said  purchase  the  said  last  named  defendants  have  controlled 
and  managed  the  same,  and  have  appropriated  the  proceeds  and 
earnings  thereof,  amounting  to  about  five  thousand  dollars  per 
month,  to  their  own  use. 

That  said  last  mentioned  purchase  was  made  and  has  been  paid 
for,  by  said  last  named  defendants,  with  the  moneys  and  assets  of 
said  C.P.,  and  with  the  moneys,  gains,  and  profits  so  as  aforesaid 
received,  realized,  and  appropriated  to  their  own  use  by  said  last 
named  defendants,  under  the  names  respectively  of  Charles  Crocker 
and  Co.  and  said  Contract  and  Finance  Company,  and  not  other- 
wise. 


[48] 


60. 

That  the  Chesapeake  and  Ohio  Railroad  Company  was,  and  is,  a 
corporation  formed  and  existing  pursuant  to  the  laws  of  the  State 
of  Virginia,  for  the  purpose  of  constructing  and  maintaining  a 
railroad  from  the  James  River  to  the  Ohio  River,  about  400 
miles  in  length.  The  plaintiff  is  informed  and  believes,  and  avers 
upon  and  according  to  his  information  and  belief,  that  the  defend- 
ant, Collis  P.  Huntington,  on  or  about  the  1st  day  of  April,  1870, 
purchased  a  majority  of  the  capital  stock  of  said  last  named 
corporation,  and  claims  now  to  be  the  owner  thereof;  and  was  then 
elected,  and  has  ever  since  continued  to  be,  the  President  and 
Manager  of  said  Company. 

That  said  defendant  Huntington  has,  as  plaintiff  is  informed  and 
believes,  and  avers,  upon  and  according  to  his  information  and 
belief,  paid  for,  and  in  respect  to,  the  interest  which  he  claims  to 
own  in  the  last  mentioned  corporation,  the  sum  of  two  and  one-half 
million  dollars.  That  such  payment  was  made  by  appropriating  the 
earnings  and  profits  of  the  said  C.  P.,  and  from  the  moneys,  gains, 
and  profits  so  as  aforesaid  received  by  said  defendants,  in  the 
names,  respectively,  of  Charles  Crocker  &  Company  and  the  Con- 
tract and  Finance  Company,  and  not  otherwise. 


61. 

That  on  or  about  the  day  of  187  ,  the  said 

Central  Pacific  Railroad  Company  made  and  issued  to  the  defend- 
ants, Charles  Crocker  and  Silas  VV.  Sanderson,  Esq.,  as  Trustees, 
1,000  bonds,  each  for  the  sum  of  $1,000,  payable  in 
years  from  the  date  thereof,  with  interest  at  the  rate  of  six  per 
cent,  per  annum.  And  to  secure  the  payment  of  said  bonds,  and 
the  interest  thereon,  this  said  C.  P.  made,  executed,  and  delivered 
to  the  said  defendants,  Charles  Crocker  and  Silas  W.  Sanderson, 
Esq.,  as  Trustees,  a  mortgage  upon  all  the  lands  granted  to  said 
C.  P.  by  the  United  States,  in  pursuance  to  the  Acts  of  Congress 
in  this  complaint  already  mentioned  and  set  forth. 


[49] 

The  plaintiff  is  informed  and  believes,  and  avers,  upon  and  accord, 
ing  to  his  information  and  belief,  that  said  defendants  Leland  Stan- 
ford, Huntington,  Hopkins,  Charles  Crocker,  Charles  Crocker, 
Executor  of  the  estate  of  E.  B.  Crocker  deceased,  have  and  hold 
said  bonds,  and  claim  to  be  the  owners  thereof;  but  that  all  the 
said  bonds  are  the  property  of  the  said  C.  P.,  and  are  held  by  said 
last  mentioned  defendant  in  trust  for  the  said  C.  P. 


62. 


That  on  or  about  the  10th  day  of  June,  1874,  the  said  C.  P., 
having  made  large  advances  to  a  corporation  known  as  the  Califor- 
nia Pacific  Railroad  Company,  the  said  defendants  Leland  Stanford, 
Huntington,  Hopkins,  and  Crocker  claiming  to  own  and  to  be  en- 
titled to  the  sums  of  money  so  advanced  by  the  said  C.  P.,  made  an 
assignment  thereof  to  the  defendant  James  B.  Haggin.  That 
thereafter,  the  said  Stanford,  Huntington,  Hopkins,  and  Crocker 
caused  judgment  to  be  confessed  by  said  California  Pacific  Railroad 
Company  in  favor  of  said  James  B.  Haggin,  in  the  District  Court 
of  the  Sixth  Judicial  District  of  the  State  of  California,  for  about 
the  sum  of  $1,309,041.84.  That  said  James  B.  Haggin  holds 
said  judgment  in  secret  trust  for  the  use  of  said  Leland  Stanford, 
Huntington,  Hopkins,  and  Crocker ;  and  that  the  same  of  right  be- 
longs to  the  said  C.  P. 


63. 


That  the  said  defendants,  Leland  Stanford,  C.  P.  Huntington, 
Mark  Hopkins,  and  Charles  Crocker,  have,  since  the  incorporation 
of  the  C.  P.,  been  acting  as  Directors  and  managing  agents  there- 
of. And  as  such  Directors  ■  and  managing  agents,  it  is  and  has 
been  their  duty  to  keep  said  C.  P.  in  good  and  sufficient  repair, 
and  to  use  the  revenue  thereof  for  such  purpose.  But  instead 
of  so  doing,  and  unmindful  of  their  duty  in  this  regard,  the  said 
defendants  have  diverted  the  revenues  of  said  company  to  the  use 
of  the  Southern  Pacific  Railroad  Company,  and  other  corporations, 


[50] 

and  have  allowed  the  tracks,  bridges,  culverts,  water-ways,  and 
superstructure  of  the  said.  C.  P.  to  become  in  an  unsafe  and  un- 
sound condition,  and  in  want  of  great  and  immediate  repairs  ;  so 
as  to  render  the  same  in  many  places  unsafe  for  the  transportation 
of  passengers.  And  that  the  said  works  and  superstructure  of  the 
said  C.  P.,  at  this  time,  are  in  need  of  large  and  extensive  repairs ; 
the  cost  of  which  repairs,  as  plaintiff  is  informed,  and  believes,  and 
therefore  avers  upon  and  according  to  his  information  and  belief,  will 
amount  to  the  sum  of  two  million  dollars,  and  upwards. 


64. 


That  on  or  about  the  1st  of  May,  1871,  the  California  Pacific 
Railroad  Company  was  a  corporation  organized  pursuant  to  the  laws 
of  the  State  of  California,  then  engaged  in  running  a  line  of  rail- 
road from  Vallejo  to  Marysville,  with  some  branch  lines  connect- 
ing therewith,  and  having  a  capital  stock  of  twelve  million  dollars. 

That  on  or  about  the  said  1st  day  of  May,  1871,  the  said  defend- 
ants, Leland  Stanford,  Huntington,  Hopkins,  Charles  and  E.  B. 
Crocker,  purchased  nearly  all  the  stock  of  the  said  last  mentioned 
corporation,  and  now  claim  to  be  owners  thereof. 

That  said  purchase  was  made,  and  has  been  paid  for  by  said  last 
mentioned  defendants,  with  the  moneys  and  assets  of  the  said  C. 
P.,  and  with  the  moneys  and  profits  so  as  aforesaid  received  and 
realized,  and  appropriated  to  their  own  use  by  the  said  last  named 
defendants  and  their  confederates,  under  the  names,  respectively,  of 
said  Charles  Crocker  &  Company,  and  the  said  Contract  and 
Finance  Company. 

That  at  the  time  of  the  making  of  said  purchase  there  were  is- 
sued by  the  said  California  Pacific  Railroad,  and  delivered  to  said 
defendants,  Leland  Stanford,  Huntington,  Hopkins,  and  Charles 
and  E.  B.  Crocker,  1,600  bonds  of  the  said  California  Pacific  Rail- 
road, each  for  the  sum  of  $1,0003  made  payable  in  20  years  from 
the  date  thereof,  with  interest  at  the  rate  of  six  per  cent,  per  an- 
num, payable  semi-annually ;  which  said  bonds  are  held  by  said 
last  mentioned  defendants  in  trust  for  the  said  C.  P. 


[51] 


65. 


That  the  Western  Development  Company  is  a  corporation  formed 
pursuant  to  the  laws  of  the  State  of  California,  for  the  purpose, 
as  plaintiff  is  informed  and  believes,  and  avers,  upon  and  according 
to  his  information  and  belief,  taking  contracts  for  building  and 
equipping  railroads,  and  for  the  repair  of  such  railroads  as  may  be 
controlled  by  the  said  defendants,  Leland  Stanford,  Huntington, 
Hopkins  and  Crocker ;  and  was  organized  for  the  purpose  of  taking 
the  place  of  the  said  Contract  and  Finance  Company,  so  as  to  carry 
on  business  of  the  same  nature,  and  to  enable  the  said  last  mention- 
ed defendants  to  effectually  conceal  from  this  plaintiff,  and  the  rest 
of  the  world,  their  fraudulent  and  nefarious  practices,  done  and  per- 
petrated through  the  agency  and  instrumentality  of  said  Contract 
and  Finance  Company. 

And  that  the  said  Western  Development  Company  is  in  fact  own- 
ed and  controlled  by  the  said  defendants,  Leland  Stanford,  Hunt- 
ington, Hopkins,  and  Charles  Crocker. 

And  that  all  contracts  given  by  said  last  mentioned  defendants 
to  said  Western  Development  Company,  and  all  services  rendered 
by  said  Western  Development  Company,  on  or  to  the  railroads  con- 
trolled by  said  last  mentioned  defendants,  are  and  have  been  paid 
for  at  prices  greatly  in  excess  of  their  actual  value ;  with  the  in- 
tent to  cheat  and  defraud  this  plaintiff  and  the  other  stockholders 
of  the  said  C.  P.  out  of  their  proportion  of  the  earnings  thereof. 


6Q. 


That  as  plaintiff  is  informed  and  believes,  and  upon  and  ac- 
cording to  his  information  and  belief,  charges  and  avers,  the  de- 
fendants, Leland  Stanford,  Huntington,  Hopkins,  Charles'  and  E. 
B.  Crocker,  have  become  and  are  the  owners  of  large  amounts  of 
valuable  property  in  the  leading  cities  and  towns  of  this  State,  and 
in  many  of  the  counties  thereof ;  and,  especially,  in  the  city  and 
county  of  San  Francisco.     The  title  to  some  of  which  property 


[52] 

stands  in  the  name  of  the  defendant  Stanford,  and  some  in  the 
names  of  the  other  defendants,  or  some  of  them  ;  and  some  in  the 
name  of  persons  for  the  uses  of  said  last  mentioned  defendants — 
the  names  of  said  persons  being  unknown  to  the  plaintiff;  but 
whom,  when  discovered,  plaintiff  asks  may  be  made  defendants 
herein. 

That  as  plaintiff  is  informed  and  believes,  and  so  avers  upon  and 
according  to  his  information  and  belief,  all  of  said  property  so  held 
by  said  last  mentioned  defendants,  or  either  of  them,  acquired 
since  the  first  of  January,  1862,  has  been  paid  for  by  said  last 
mentioned  defendants  with  the  money  and  assets  of  the  said  C.  P., 
and  with  moneys,  gains,  and  profits  so  as  aforesaid  received, 
realized,  and  appropriated  to  their  use,  by  the  said  last  mentioned 
defendants,  under  the  names,  respectively,  of  Charles  Crocker  & 
Co.,  and  the  said  Contract  and  Finance  Co.,  and  not  otherwise. 


67. 


That  on  or  about  the  day  of 

1875,  the  defendants,  Leland  Stan- 
ford, Huntington,  Hopkins,  and  Charles  Crocker,  caused  an  ap- 
plication to  be  filed  in  the  County  Court  of  the  County  of  Sacra- 
mento, praying  for  the  dissolution  of  the  corporation  of  the  said 
Contract  and  Finance  Company.     And  on  the 

day  of 
•1875,  an  order  was  made  by  said  County  Court,  declaring  said 
Contract  and  Finance  Company  to  be  dissolved  and  disincorporated. 
That  said  application  and  all  proceedings  had  therein  were  made 
without  the  knowledge  of,  and  without  any  notice  to,  the  plaintiff. 
.And  plaintiff  avers  that  said  application  was  made,  and  that  said 
order  was  obtained,  wrongfully  and  fraudulently,  and  for  the  pur- 
pose of  cheating  and  defrauding  this  plaintiff,  and  of  depriving  him 
of  his  just  rights  in  the  premises,  and  for  the  further  purpose  of 
preventing  him  from  having  the  evidence  which  the  records  and 
papers  of  the  said  corporation  would  supply  in  support  of  this 
action. 


[53] 


68. 

That  since  the  said  defendants,  Leland  Stanford,  Charles  and  E. 
B.  Crocker,  Huntington,  and  Hopkins  became  informed  and  ad- 
vised of  the  contents  of  the  complaint  of  the  said  Samuel  Bran- 
nan,  as  is  hereinbefore  set  forth,  except  matters  contained  in  the 
foregoing  Article  67,  and  that  said  Brannan  intended  to  file  said 
complaint,  they,  with  the  gains  and  profits  made  by  them  in  the 
name  of  said  Charles  Crocker  &  Co.,  and  in  the  name  of  said 
Contract  and  Finance  Company,  have  purchased  and  secured  to 
themselves  a  majority  of  the  capital  stock  of  said  C.  P.,  which  was 
lawfully  issued  upon  the  basis  of  eight  million  five  hundred  thousand 
dollars  (18,500,000)  capital,  as  hereinbefore  mentioned. 


69. 

That  plaintiff  is  informed  and  believes,  and  therefore  avers, 
upon  and  according  to  his  information  and  belief,  that  the  said  de- 
fendants, Leland  Stanford,  Huntington,  Hopkins,  Charles  and  E. 
B.  Crocker  are  not  worth,  and  have  not  in  their  possession  or  under 
their  control,  or  jointly  or  severally  are  not  the  owners  of  property 
exceeding  in  value  two  hundred  and  fifty  thousand  dollars,  over 
and  above  the  property  purporting  to  have  been  acquired  by  them, 
and  of  which  they  obtained  possession  and  control,  by  misappropri- 
ating the  assets  and  subsidies  of  said  C.  P.,  as  hereinbefore 
averred. 


70. 


That  as  plaintiff  is  informed  and  believes,  and  therefore  charges 
and  avers,  upon  and  according  to  his  information  and  belief,  said 
Leland  Stanford,  Huntington,  Hopkins,  Charles  and  E.  B.  Crocker, 
at  the  time  they  became  directors  of  said  C.  P.,  were  respectively 
comparatively  poor  men,  that  is  to  say :  the  said  Leland  Stanford 
was  not  worth  to  exceed  fifty  thousand  dollars ;  the  said  C.  P. 
Huntington  was  not  worth  to  exceed  fifty  thousand  dollars  ;  the  said 


[54] 

Mark  Hopkins  was  not  worth  to  exceed  fifty  thousand  dollars  ;  the 
said  Charles  Crocker  was  not  worth  to  exceed  thirty  thousand  dol- 
lars ;  and  the  said  E.  B.  Crocker  was  not  worth  to  exceed  the  sum 
of  ten  thousand  dollars. 

That  none  of  the  property  of  the  said  last  named  defendants,  or 
either  of  them,  was  applied  or  used  in  the  construction  of  said  C.  P. 
railroad  and  telegraph  line,  hut  the  same  has  continued  to  be  held 
and  owned,  and  is  now  held  and  owned,  by  said  last  named  defend- 
ants, respectively,  as  the  same  was  held  and  owned  at  the  time  they 
first  became  directors  of  the  said  C.  P.,  except  as  the  same  has 
been  by  them,  respectively,  exchanged  for  other  property. 

That  beyond,  and  over  and  above,  the  capital  stock  of  said  C. 
P.  and  W.  P.,  and  the  other  railroad  companies  herein  mentioned, 
the  said  Leland  Stanford,  Huntington,  Hopkins,  and  Charles  and 
E.  B.  Crocker  have,  by  means  of  appropriating  for  that  purpose 
the  subsidies  and  assets  of  the  said  C.  P.,  and  not  otherwise,  ac- 
quired and  now  claim  to  hold  and  own,  respectively,  large  amounts 
of  real  and  personal  estate  of  great  value,  to  wit,  of  the  value  of 
two  million  dollars  ($2,000,000). 

71. 

That  the  plaintiff  has  been  wholly  ignorant  of  the  fraudulent 
devices,  practices,  and  misappropriations  of  the  earnings,  assets, 
and  subsidies  of  the  said  C.  P.,  hereinbefore  mentioned  and  averred, 
until  about  the  first  day  of  January,  1875,  and  did  not,  until  said  last 
mentioned  day,  know  of,  suspect,  or  believe,  or  have  any  cause  to 
suspect  or  believe,  any  of  the  said  fraudulent  acts,  transactions, 
and  doings  hereinbefore  mentioned  and  charged  upon  the  said 
Leland  Stanford,  Huntington,  Hopkins,  Charles  and  E.  B.  Crocker 
and  their  confederates. 


72. 

That  the  plaintiff  is  informed  and  believes,  and  upon  and  accord- 
ing to  his  information  and  belief  so  charges  and  avers,  that  as 
owner  and  holder  of  ten  shares  of  the  only  capital  stock  legally 


[55] 

issued,  he  is  entitled  to  demand  and  receive,  and  have  of  and  from 
the  said  Central  Pacific,  and  from  the  said  Leland  Stanford,  Hunt- 
ington, Hopkins,  Charles  Crocker,  and  Charles  Crocker  as  executor 
of  the  estate  of  E.  B.  Crocker,  deceased,  as  plaintiff's  part  and 
portion  of  the  profits  made  in  constructing,  furnishing,  equipping, 
and  operating  the  railroad  and  telegraph  line  of  said  C.  P.,  the 
sum  of  about  one  million  two  hundred  thousand  dollars,  and  to 
fifteen  thousand  and  fifty  acres  of  land,  so  granted  to  the  said  C. 
P.  by  the  said  Acts  of  Congress. 

Wherefore,  The  complainant  prays  the  following  judgment 
and  relief,  to  wit : 

First. — That  during  the  pendency  of  this  action,  a  receiver  may 
be  appointed  by  this  honorable  Court,  to  take  charge  of,  manage, 
and  run  said  C.  P.  Railroad  and  telegraph  line,  said  W.  P.  Rail- 
road and  telegraph  line,  and  the  branch  thereof  hereinbefore  des- 
cribed ;  said  San  Francisco,  Oakland,  and  Alameda  railroad  and 
ferries ;  said  San  Joaquin  Valley  Railroad  ;  said  California  and  Ore- 
gon Railroad ;  and  all  the  other  properties  consolidated  under  the 
name  of  The  Central  Pacific  Railroad  Company  ;  said  California 
Pacific  Railroad ;  said  Southern  Pacific  Railroad  ;  said  Los  An- 
geles and  San  Pedro  Railroad ;  said  Market  Street  Railway ; 
said  Potrero  and  Bay  View  Railroad ;  and  said  telegraph  lines  ; 
and  to  discharge  such  other  duties  relative  thereto  as  to  this  Court 
shall  seem  meet. 

Second. — That  during  the  pendency  of  this  action,  said  Leland 
Stanford,  Huntington,  Hopkins,  and  Charles  Crocker,  and  their 
confederates,  be  restrained  and  enjoined  from  acting  as  members  of 
the  Board  of  Directors  of  the  said  C.  P.,  or  of  any  of  the  other 
corporations  in  this  prayer  hereinbefore  mentioned  ;  and  that  they 
be  restrained  from  voting  at  any  meeting  of  the  stockholders  of 
the  said  C.  P.,  as  representing  any  of  the  shares  of  the  capital 
stock  of  the  said  C.  P.,  and  as  representing  any  of  the  shares  by 
them  or  either  of  them  acquired  since  April  10th,  1870. 

Third. — That  the  said  Leland  Stanford,  Huntington,  Hopkins, 
Charles  Crocker,  and  their  confederates,  be  restrained  and  en- 
joined from  selling,  transferring,  pledging,  or  otherwise  disposing 
of  any  portion  of  the  stock  of  said  C.  P.,  or  of  any  of  the  said 
railroad  corporations  in  this  prayer  above  set  forth,  or  of  the  stock 


[56] 

of  said  Wells,  Fargo,  &  Co.,  or  of  the  stock  of  the  said  Oakland 
Water  Front  Co.,  or  of  any  mortgage  bonds  of  said  C.  P.,  or  of 
said  California  Pacific  Railroad  Co.,  or  of  said  San  Francisco, 
Oakland,  and  Alameda  Railroad  Co.,  or  of  said  Southern  Pacific 
Railroad  Co. ;  or  of  the  bonds  issued  upon  said  land  grant,  as  in 
this  complaint  set  forth  ;  and  of  the  stock  of  the  said  Rocky  Moun- 
tain Coal  and  Iron  Co.,  of  Wyoming;  or  of  the  Atlantic  and  Pa- 
cific Telegraph  Co.,  or  of  the  Contract  and  Finance  Co.,  or  the 
Western  Development  Co. ;  or  of  any  bonds  heretofore  received  by 
said  defendants,  Stanford,  Huntington,  Hopkins,  and  Crocker,  or 
either  of  them,  for  the  use  or  benefit  of  said  C.  P.,  or  any  other 
of  said  corporations,  defendant  herein. 

Fourth. — That  said  Wells,  Fargo  &  Co.  be  restrained  and  en- 
joined from  paying  any  dividends  on  its  capital  stock,  so  as  afore- 
said issued  to  said  Leland  Stanford,  Huntington,  Hopkins,  Charles 
and  E.  B.  Crocker,  and  their  confederates,  or  either  of  them,  as 
in  this  complaint  averred. 

Fifth. — That  the  said  Oakland  Water  Front  Co.  be  restrained 
and  enjoined  from  paying  any  dividends  on  its  capital  stock,  so  as 
aforesaid  issued  to  said  Leland  Stanford,  Charles  Crocker,  E.  B. 
Crocker,  Huntington,  Hopkins,  and  their  confederates,  or  either 
of  them,  as  in  this  complaint  averred ;  or  from  making  any  trans- 
fer of  any  portion  of  the  property  of  the  said  corporation  to  said 
last  named  defendants,  or  either  of  them,  until  the  further  order  of 
this  Court. 

Sixth. — That  the  said  Rocky  Mountain  Coal  and  Iron  Com- 
pany, of  Wyoming,  be  restrained  and  enjoined  from  paying  any 
dividends  on  its  capital  stock,  so  as  aforesaid  issued,  to  said  Leland 
Stanford,  Charles  Crocker,  E.  B.  Crocker,  Huntington,  Hopkins, 
and  their  confederates,  or  either  of  them,  as  in  this  complaint 
averred. 

Seventh. — That  any  contract  of  sale,  or  any  written  agreement 
therefor,  or  any  deed  concerning  the  same,  by  which  the  lands, 
or  any  part  thereof,  granted  by  the  United  States  to  the  C.  P., 
have  been  passed,  or  are  hereafter  passed,  into  the  possession  and 
disposal  of  said  B.  B.  Redding,  be  set  aside  as  fraudulent  and 
void. 

Eighth. — That  the  said  B.  B.  Redding  and  his  confederates,  the 


[57] 

said  Leland  Stanford,  Huntington,  Hopkins,  and  Charles  Crocker, 
and  each  of  them,  and  their  confederates,  be  restrained  and  en- 
joined, and  the  said  C.  P.  and  the  said  W.  P.  and  all  of  the  said 
corporations  in  this  prayer  above  mentioned,  and  the  officers  of 
each  of  said  corporations,  be  restrained  and  enjoined  from  sell- 
ing, disposing  of,  mortgaging,  or  conveying,  or  contracting  to  sell, 
mortgage,  or  dispose  of  any  of  the  lands  granted  by  the  United 
States  to  the  said  C.  P.  and  said  W.  P.  in  aid  of  the  construction 
of  the  said  railroads,  or  either  of  them.- 

Ninth. — That  each  and  every  of  the  contracts  purporting  to 
have  been  made  between  the  C.  P.  on  the  one  part,  and  Charles 
Crocker  &  Co.  on  the  other  part,  relating  in  any  manner  to  the 
construction  and  equipment  of  the  said  C.  P.  Railroad  and  tele- 
graph line,  be  adjudged  and  decreed  to  be  and  to  have  been  null 
and  void,  and  a  fraud  upon  the  said  C.  P.,  and  upon  the  plaintiff 
and  other  stockholders  of  the  said  C.  P.  corporation. 

Tenth. — And  that  each  and  every  of  the  contracts  purporting  to 
have  been  made  between  the  C.  P.  on  the  one  part,  and  the  said 
Contract  and  Finance  Co.  on  the  other  part,  and  relating  in  any 
manner  to  the  construction  of  the  said  C.  P.  Railroad  and  tele- 
graph line,  or  repairs  therefor,  be  adjudged  and  decreed  to  be  and 
to  have  been  null  and  void,  and  a  fraud  upon  the  said  C.  P.,  and 
upon  the  plaintiff  and  the  other  stockholders  of  the  said  C.  P.  cor- 
poration. 

Eleventh. — That  each  and  every  of  the  contracts  purporting  to 
have  been  made  between  the  C.  P.,  or  any  of  the  railroad  corpo- 
rations, or  either  of  them,  hereinbefore  mentioned,  on  the  one  part, 
and  the  said  Western  Development  Co.  on  the  other  part,  and  re- 
lating in  any  manner  to  the  construction  of  the  said  C.  P.  Rail- 
road and  telegraph  line,  or  any  of  the  lines  of  the  aforesaid  corpor- 
ations, be  adjudged  and  decreed  to  be  and  to  have  been  null  and 
void,  and  a  fraud  upon  the  said  C.  P.,  and  upon  the  plaintiff  and 
the  other  stockholders  of  the  said  C.  P.  corporation. 

Twelfth. — That  an  accounting  be  taken  of  the  actual  cost  of  the 
building,  construction,  completion,  and  furnishing  and  equipping  of 
said  C.  P.  Railroad  and  telegraph  line,  and  of  said  other  railroad 
lines ;  also,  the  receipts  and  income  thereof,  from  the  time  the  same 
commenced  running  to  the  time  when  the  receiver  to  be  appointed 


[58] 

by  this  Court  shall  take  charge  of  said  railroads  ;  and  a  fair  charge 
against  and  upon  said  Wells,  Fargo  &  Co.,  for  the  exclusive  and 
special  privileges  so  as  aforesaid  granted  to  them ;  and  also,  an 
accounting  of  all  sales  of  land  acquired  by  said  C.  P.  Co.,  and  said 
W.  P.  Co.;  and  also  an  accounting  of  the  disposition  of  all  the 
stock  of  the  said  C.  P.;  of  the  bonds  issued  to  it  by  the  United 
States ;  by  said  county  of  Placer  ;  by  the  said  city  and  county  of 
San  Francisco ;  by  the  said  city  and  county  of  Sacramento ;  of 
the  bonds  issued  by  it,  the  interest  on  which  was,  and  is,  guaran- 
teed by  the  State  of  California ;  of  the  moneys  received  by  it  from 
the  State  of  California ;  of  the  moneys  received  by  it  from  the 
subscriptions  to  its  capital  stock  ;  the  gains  and  profits  made  by 
said  Redding,  Leland  Stanford,  Huntington,  Hopkins,  Charles  and 
E.  B.  Crocker,  and  their  confederates,  by  the  re-sale  of  lands 
which  were  heretofore  belonging  to  the  said  C.  P.  and  W.  P.,  and 
the  said  California  and  Oregon  railroad,  and  the  said  Southern  Pa- 
cific railroad  ;  of  the  dividends  received  from  said  Wells,  Fargo  & 
Co.'s  stock,  and  the  stock  of  the  Rocky  Mountain  Coal  and  Iron 
Co. ,  of  Wyoming  ;  and  that  in  said  accounting,  the  said  Leland 
Stanford,  Huntington,  Hopkins,  Charles  Crocker,  and  Charles 
Crocker,  the  executor  of  the  estate  of  E.  B.  Crocker,  deceased, 
and  B.  B.  Redding,  and  their  associates  and  confederates,  be 
charged  with  the  gross  receipts  and  amounts  of  all  subsidies, 
moneys,  bonds,  and  other  assets  received  by  the  said  C.  P.,  and  in 
its  name,  and  be  credited  with  the  actual  expenses  only,  at  the 
fair  cash  value  thereof,  and  the  actual  cost  of  constructing,  of  equip- 
ping the  said  railroad  and  telegraph  line  from  Sacramento  aforesaid, 
to  Echo  City,  aforesaid  ;  such  actual  cost  as  was  actually  paid  by 
said  Contract  and  Finance  Company,  and  by  said  C.  Crocker  & 
Co.,  without  taking  into  account  the  profits  and  gains  made  by 
them,  or  either  of  them. 

Thirteenth. — That  the  said  Leland'  Stanford,  Huntington,  Hop- 
kins, Charles  Crocker,  and  Charles  Crocker,  executor  of  the  estate 
of  E.  B.  Crocker  deceased,  and  Redding,  and  their  associates,  be 
adjudged  to  surrender  to  the  said  C.  P.  all  bonds  of  the  United 
States  and  of  the  said  C.  P.  Co.,  and  all  of  the  stock  of  the  said 
C.  P.  Co.,  by  them  or  either  of  them  held,  or  held  by  any  person 
in  secret  trust  for  them  or  either  of  them. 


[59] 

Fourteenth. — That  the  newspapers  known  respectively  as  the 
"  Sacramento  Union  "  and  the  "  Sacramento  Record,"  and  the 
good  will  and  property  of  each  and  either  of  them,  be  adjudged  to  be 
held  in  trust  for  said  C.  P.,  and  that  the  said  defendant  the  Sacra- 
mento Publishing  Company  and  the  said  William  H.  Mills  be  ad- 
judged to  account  to  said  C.  P.  for  the  issues  and  profits  thereof. 

Fifteenth. — That  the   stock  of  the  said  W.  P.  and  the  bonds 
issued  to  it  be  adjudged  to  be  the  property  of  the  said  C.  P. ;  that 
the  stock  of  the  said  San  Francisco,  Oakland,  and  Alameda  Rail- 
road Co.,  and  the  bonds  secured  upon  the  property  thereof,  be  ad- 
judged to  be  the  property  of,  and  be  transferred  to,  the   C.  P. 
aforesaid.     That  the  capital  stock  of  the  said  Southern  Pacific 
Railroad  Co.,  and  the  bonds  issued  by  said  company,  and  the  lands 
granted  to  it,  and  the  stock  of  the  said  San  Francisco  and  San 
Jose  Railroad  Co.,  and  of  the  said  San  Joaquin  Valley  Railroad 
Co.,  and  the  bonds  issued  thereon,  and  the  stock  of  the  California 
and  Oregon  Railroad  Co.,  and  the  bonds  issued  thereon,  and  the 
lands  granted  to  it — owned  or  claimed  to  be  owned  by  the  defend- 
ants, Leland  Stanford,  Huntington,  Hopkins,  Charles  Crocker  and 
Charles  Crocker,  Executor  of  the  estate  of  E.  B.  Crocker,  deceased, 
or  either  of  them,  and  their  confederates,  or  by  any  person  on  their 
behalf,  be  adjudged  to  be  the  property  of,  and  to  be  transferred  to, 
the  said  C.  P. ;  and  that  all  the  lands  and  property  mentioned  in 
this  complaint,  and  all  lands  and  property  which  may  be  found  to 
have  been  acquired  by  the  said  Leland  Stanford,  Huntington,  Hop- 
kins, Charles  and  E.  B.  Crocker,  or  either  of  them,  since  the  first 
day  of  January,  1862,  be  adjudged  to  have  been  acquired  with  the 
property  and  assets  of  the  said  C.  P.  corporation,  and  be  adjudged 
to  be  transferred  to  it.     And  that  said  defendants,  Leland  Stan- 
ford, Huntington,  Hopkins,  Charles  Crocker,  and  Charles  Crocker, 
Executor  of  the  estate  of  E.  B.  Crocker,  deceased,  B.  B.  Redding, 
and  their  confederates,  be  adjudged  to  pay  into  the  treasury  of  the 
said  C.  P.  corporation  the  sum  of  one  hundred  millions  of  dollars. 
That  said  Wells,  Fargo  &  Co.  be  adjudged  to  transfer  one  and  a 
half  millions  of  its  capital  stock  to  the  said  C.  P.   corporation. 
That  the  said  Rocky  Mountain  Coal  and  Iron  Co.,  of  Wyoming, 
and  the  said  Oakland  Water  Front  Co.,  be  respectively  adjudged 
to  transfer  to  the  said  C.  P.  corporation  all  the  stock  now  held  in 


[60] 

said  corporations  by  said  defendants,  Leland  Stanford,  Huntington, 
Hopkins,  Charles  Crocker,  and  Charles  Crocker,  Executor  of  the 
estate  of  E.  B.  Crocker,  deceased,  or  standing  in  the  name  of  any 
person  or  persons  for  their  use,  or  for  the  use  of  either  of  them. 
And  for  such  other  and  further  relief  as  shall  be  equitable,  and 
the  nature  of  the  case  may  demand. 

ALFEED  A.  COHEN, 
DELOS  LAKE, 

Attorneys  for  Plaintiff. 


State  of  California,  ) 

City  and  County  of  San  Francisco,  \ 
John  K.  Robinson,  being  first  duly  sworn,  says :  that  he  is  the 
plaintiff  above  named ;  that  he  has  read  the  foregoing  complaint 
and  knows  the  contents  thereof;  that  the  same  is  true  of  his  own 
knowledge  except  as  to  the  matters  therein  stated  on  information 
and  belief;  and  as  to  those  matters,  he  believes  it  to  be  true. 

JOHN.  R.  ROBINSON. 

Sworn  to  before  me  this  15th  day  of  March,  1876. 

Holland  Smith, 
[seal.]  Notary  Public. 


SCHEDULE  "  A."— ARTICLES  OF  ASSOCIATION. 

First — The  name  of  the  Association  shall  be  the  "  Central 
Pacific  Railroad  Company  of  California." 

Second — The  number  of  years  the  same  shall  continue  is  fifty 
years. 

Third— The  amount  of  the  capital  stock  of  this  Company  shall 
be  eight  million  five  hundred  thousand  dollars,  divided  into  shares 
of  one  hundred  dollars  each. 


[61] 

Fourth-  -The  names  of  nine  Directors  to  manage  the  concerns 
of  the  Company  are :  Leland  Stanford,  Sacramento ;  Charles 
Crocker,  Sacramento ;  James  Bailey,  Sacramento ;  Theodore  D. 
Judah,  Sacramento  ;  L.  A.  Booth,  Sacramento ;  C.  P.  Hunting- 
ton, Sacramento ;  Mark  Hopkins,  Sacramento ;  D.  W.  Strong, 
Dutch  Flat ;  Charles  Marsh,  Nevada. 

Fifth — The  places  from  and  to  which  the  proposed  road  is  to  be 
constructed  are  the  City  of  Sacramento  and  the  eastern  boundary 
of  the  State  of  California. 

Sixth — The  counties  into  and  through  which  this  road  is  in- 
tended to  pass  are  Sacramento,  Placer,  and  Nevada. 

Seventh — The  length  of  road,  as  near  as  may  be,  is  one  hundred 
and  fifteen  miles. 

Eighth. — The  names  of  five  Commissioners  to  open  books  of 
subscription  to  the  stock  are :  B.  F.  Moore,  Dutch  Flat ;  Edward 
J.  Brickell,  Illinoistown  ;  E.  G.  Waite,  Nevada ;  E.  McLaughlin, 
Grass  Valley  ;  Samuel  Cross,  Sacramento. 

Ninth — We,  the  undersigned,  do  hereby  subscribe  to  the  above 
Articles  of  Association  our  names,  and  the  amounts  of  stock  taken 
by  us  respectively  in  said  Central  Pacific  Railroad  Company  of 
California :  James  Bailey,  Sacramento ;  150  shares.  Mark  Hop- 
kins, Sacramento  ;  150  shares.  C.  P.  Huntington,  Sacramento  ; 
150  shares.  Charles  Marsh,  Nevada ;  50  shares.  Theo.  D.  Judah, 
Sacramento  ;  150  shares.  D.  W.  Strong,  Dutch  Flat ;  50  shares. 
N.  W.  Blanchard,  Dutch  Flat ;  10  shares.  C.  Cole,  Sacramento  ; 
10  shares.  John  F.  Morse,  Sacramento ;  5  shares.  P.  H.  Rus- 
sell, Sacramento  ;  5  shares.  N.  L.  Drew,  Sacramento  ;  5  shares. 
Wm.  G.  English,  Sacramento ;  10  shares.  Chas.  G.  Hooker, 
Sacramento;  10  shares.  Millikin  Bros.,  Sacramento;  10  shares. 
Lord,  Holbrook  &  Co.,  Sacramento ;  10  shares.  Lucius  A. 
Booth,  Sacramento ;  10  shares.  E.  J.  Brickell,  Illinoistown  ;  40 
shares.  B.  Brickell,  Illinoistown ;  20  shares.  B.  F.  Moore, 
Dutch  Flat ;  10  shares.  P.  T.  Mathewson,  Dutch  Flat,  5  shares. 
E.  L.  Bradley  and  R.  M.  Trim,  Dutch  Flat ;  25  shares.  E.  G. 
Waite,  Nevada  ;  10  shares.  John  Williams,  Nevada ;  10  shares. 
T.  Ellard  Beans,  Nevada;  10  shares.  J.  N.  Lumay,  Nevada ;  10 
shares.     E.   McLaughlin,  Grass  Valley ;  10  shares.     Wm.  Lout- 


[62] 

zenheim,  Grass  Valley  ;  5  shares.  Leland  Stanford,  Sacramento  ; 
150  shares.  C.  Crocker,  Sacramento  ;  150  shares.  Samuel  Cross. 
Sacramento;  10  shares.     Total,  1,250  shares. 


State  of  California, 
City  and  County  of  Sacramento,  \  ss* 
Be  it  remembered,  that  on  this  27th  day  of  June,  1861,  per- 
sonally appeared  before  the  undersigned,  a  notary  public  in  and 
for  said  city  and  county,  Leland  Stanford,  Mark  Hopkins,  and 
C.  P.  Huntington,  three  of  the  directors  of  the  within  named  Cen- 
tral Pacific  Railroad  Company  of  California,  and  being  by  me  duly 
sworn,  say :  That  the  stock  to  the  amount  of  at  least  one  thou- 
sand dollars  for  every  mile  of  the  railroad  intended  to  be  built  by 
said  company,  to  wit,  an  amount  of  stock  exceeding  one  hundred 
and  fifteen  thousand  dollars,  has  been  in  good  faith  subscribed  by 
the  members  of  said  company,  and  that  ten  per  cent,  on  the  amount 
of  stock  subscribed  as  aforesaid  has  been  actually,  and  in  good 
faith,  paid  in  cash  to  Mark  Hopkins,  the  Treasurer  appointed  by 
the  Directors  named  in  the  within  articles  of  association,  and  that 
the  subscribers  are  all  known  by  some  one  of  said  affiants  to  be 
subscribers  thereto,  and  to  be  the  persons  so  represented. 

LELAND  STANFORD, 
MARK  HOPKINS, 
C.  P.  HUNTINGTON. 


I  hereby  certify  that  the  foregoing  affidavit  was  duly  subscribed 
and  sworn  to  by  said  Leland  Stanford,  Mark  Hopkins,  and  C.  P. 
Huntington,  by  and  before  me,  the  day  and  year  aforesaid. 

In  testimony  whereof,  I  have  hereunto  set  my  hand  and  official 
seal,  this  27th  day  of  June,  A.  d.  1861. 

[seal.]  ELIJAH  SWIFT,  Notary  Public. 


[63] 


SCHEDULE    "B." 

By  the  Act  of  Congress  of  July  27,  1866,  incorporating  the 
Atlantic  and  Pacific  Railroad  Company,  there  is  granted  to  the 
defendant,  the  Southern  Pacific  Railroad  Company — 

Sec.  3.  "  Every  alternate  section  of  public  land,  not  mineral, 
designated  by  odd  numbers,  to  the  amount  of  twenty  alternate 
sections  per  mile,  on  each  side  of  said  railroad  line,"  provided,  if 
the  route  shall  be  found  upon  the  line  of  any  other  railroad  to  con- 
struct which  Congress  has  granted  lands,  as  far  as  "  the  routes  are 
upon  the  same  general  line,  the  amount  heretofore  granted  shall  be 
deducted  from  the  amount  granted  by  this  Act."  (Acts  1st  Sess. 
39th  Cong.,  1866,  p.  304.) 

By  Act  of  Legislature  of  California,  30  acres  tide  lands  in  San 
Francisco  Bay  ;  value,  1500,000. 


